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Chancellor Cuts: Stamp Duty 0% up to £500k


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Hubbers, 

Just after listening to the Chancellors Cuts on Stamp duty and its pretty positive news. I still have a few questions that hopefully can be answered in the coming days but ill leave them here to see what response i get. 

1 - Does this apply to all of the UK (England/Scotland/Wales/NI)?

2 - Does this apply to Buy-to-Let property purchases too?

3 - Does this apply to Commercial property? 

4 - Stamp Duty holiday? Does this mean after 31st March 2021 the Stamp duty that wasn't paid will then need to be paid back over time? 

5 - Do you get a Stamp duty rebate if you purchased a property from the start of COVID -19 and between March and 8th July 2020 paid Stamp duty? 

Hope we find out the answers to above and feel free to add anymore you have? 

Cheers,

Eamon

Home Equity Gains Group 

Property Investor & Developer

http://www.hegg.info ;)

https://www.instagram.com/hegg_ltd/?hl=en B)

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Definitely lots of unanswered questions!

If it truly is a 'Stamp Duty Holiday' and we compare that to the principles of a 'Mortgage Holiday', then this would imply that the Stamp Duty will eventually need to be paid. (If this is the case, then I would continue to pay the Stamp Duty upon Completion).

However, most articles I am reading online right now do not mention the 'holiday' concept!

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He carefully mentioned 'main residence' in his speech, so it definitely won't apply to the additional 3%. Assume the standard rate on something between £125k & £500k would be zero though, so only 3% in total.

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Great questions.  I'd like to add another question to it:

6 - Does this Stamp Duty Holiday saving apply to the rebate you can get when selling a second home within the 3 year period from purchase?  e.g. if you buy yourself a second home during the SDH and sell your first home afterwards, do you get the 3% stamp duty back after the sale?

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10 minutes ago, Stuart Phillips said:

Its been confirmed that the stamp duty holiday DOES apply to 2nd homes and BTL, but the 3% levy remains.

 

I think that's the clarification everyone was looking for. Unfortunate that the 3% levy has to be paid... but it does mean house prices will benefit. Musnt grumble, it's a nice, unexpected surprise.

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I have updated my Property Tracker Spreadsheet to up the threshold for 2nd homes to £500k.

For example, on a purchase of £150,000 - prior to today, you'd fork out £5,000 on SDLT. Now and until next March, it'll be £4,500. Every little bit helps, but unless your purchase is above £125k, then it doesn't make any difference! 

Personal Blog: https://abcdad.co.uk
Property Spreadsheet and Deal Analyser: https://abcdad.co.uk/property-spreadsheet
Looking to read some Property books? https://abcdad.co.uk/books/property-books
Follow on Instagram: @abc.dad

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This is fantastic for us! Just about to buy another property and where we should have paid £12,400, we'll now pay £4,650. This is a £280,000 purchase and have to pay the 3% levy still, but a saving of over £7,000 is fantastic! Also to confirm for those who were asking, this is not a "holiday", it's a temporary tax cut so you won't have to pay the stamp duty back after March. Looking forward to this week's podcast from R&R which will hopefully discuss this.

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Pretty much any purchase above £125k will now benefit from a saving in SDLT, but as it's a percentage, the higher the purchase price, the higher the saving.

For example, assuming it's a second property or via a company, at a purchase price of £125k, you don't benefit from any savings and will still pay £3,750. If you spent £300k on a property, you'd save yourself £5k.

image.png.c06b43d9cf20740f0b7e2479945b722b.png

 

Personal Blog: https://abcdad.co.uk
Property Spreadsheet and Deal Analyser: https://abcdad.co.uk/property-spreadsheet
Looking to read some Property books? https://abcdad.co.uk/books/property-books
Follow on Instagram: @abc.dad

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  • 1 month later...
On 7/8/2020 at 4:12 PM, nicholas_b said:

I think that's the clarification everyone was looking for. Unfortunate that the 3% levy has to be paid... but it does mean house prices will benefit. Musnt grumble, it's a nice, unexpected surprise.

Does the 3% levy still apply if you are a first time buyer, but your first property happens to be a BTL? 

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Yes, unless its in a limited company when you pay 3% regardless.

If you buy a residential though whilst still owning the BTL, you will pay the levy on that purchase

043_logo_final_03.png.0cdf828351f81e6097208048ac2d018d.pngStuart Phillips

Independent, Whole of Market Mortgage Broker

AALTO Mortgages Ltd

Web  www.aaltomortgages.com

Email  sales@aaltomortgages.com

Call  020 7183 1101

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