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

[eamonheggarty 14]

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

[kathy adamson 0]

Following as I have similar questions. Hoping it applies to buy to let and commercial property (along with everyone else on here I expect )

Kathy

[onkar 32]

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!

[dino v 145]

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.

[haf1963 105]

guaranteed to not apply to ltd companies

[richardhughes 10]

So on a house purchase of £225,000 you would save the 2% between £125k to £225,000.

ie £100,000 @ 2% = £2,000 savings

 

 

[phammond 0]

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?

[Stuart Phillips 254]

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

 

[nicholas_b 52]

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.

[DerekT 216]

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! 

[julia urquhart 173]

It may also lead to higher prices so the net effect may be nil! 

Plus property sales after March next year may fall off a cliff!

[hayleyj 0]

 

 

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.

[Rob D 365]

We've put together a quick Excel calculator for seeing how much you'll save, and an article here with some more of the details.

A rare win for investors!

We'll be talking about some of the likely effects of this on next Tuesday's Ask Rob & Rob podcast.

[TommyG 16]

Thanks Rob D.

So in quick summary - this is more beneficial for investors making larger purchases?

[DerekT 216]

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.

 

[mark23 0]

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? 

[Stuart Phillips 254]

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