Stamp duty holiday ends 31^st March 2021

Last July, the chancellor created a stamp duty holiday, freeing buyers from the burden of paying stamp duty land tax on top of the price of their new property. This holiday will end on 31^st March. If you’re planning to move home this year, we believe that acting now gives you the best chance of benefiting from the current tax break. 

What is stamp duty?

Stamp duty land tax is a tax that buyers pay on top of the price of their new home. Outside the current stamp duty holiday, buyers pay stamp duty on any property worth over £125,000. First time buyers have nothing to pay unless they are buying a property worth over £300,000. Stamp duty starts at 2% of the purchase price and goes up in bands. The higher the price band the property falls into, the higher the percentage paid in stamp duty.  

There are exceptions to these rules if you are buying to let, buying a second home, or you are buying as a company rather than an individual. If in doubt, please ask and the Cobbles team will advise you. 

What is the stamp duty holiday? 

Last summer the government declared a stamp duty holiday that would run until 31^st March 2021. During the “holiday,” there is no stamp duty to pay on properties valued at £500,000 or less. 

In light of the new lockdown announced this week, demands are being made that the stamp duty holiday be extended but we don’t yet know what the outcome will be. Unless an extension is confirmed, we would advise buyers to assume the stamp duty holiday will end on 31^st March. 

Who benefits from the stamp duty holiday?

Buyers and sellers both benefit. Buyers benefit because they have less to pay. Buying property is probably the biggest financial transaction you’ll ever make, but the stamp duty holiday is an opportunity to save a four-figure sum on the overall outlay. 

Sellers benefit because the market is full of buyers looking to take advantage of the stamp duty holiday. With more people taking an interest in their properties, sellers are more likely to find buyers. 

We have seen incredible performance in the housing market since last summer and we believe that the current stamp duty holiday is the reason for it. 

When do I need to act if I want to benefit from the stamp duty holiday?

You need to act now. Stamp duty is paid at the end of the property transaction, by law within fourteen days of completion. If you make an offer on a property, or put your property on the market by mid-January, you have a chance of completing before stamp duty comes back into force on 1^st April. 

What can I do to help complete the sale in time?

Being prepared will help your chances of completing in time. People who already have a mortgage in principle can of course move more quickly than those who do not, as do those with short chains or no chain at all. It’s also a good idea to have your conveyancer and surveyor standing by so you don’t lose time finding people with the right professional knowledge. 

For sellers, it goes without saying that choosing a reputable estate agent, who will market your property in the right way at the right price, may also help you sell in time to finalise the transaction before 31^st March. 

Buy or sell property in Guildford

While we cannot guarantee that a house purchase begun in January will be completed by the end of March, we do believe that by acting now, you could well benefit from the current tax break.  To find out more about how Cobbles can help you buy or sell property in Guildford, contact us today on 01483 457 000.