Stamp Duty has been a big topic of conversation for conveyancers recently. What was already a complicated calculation, has now become even more complicated.
Questions such as when will I complete and will I get the reduced stamp duty rate are what conveyancers are being asked day to day.
Unfortunately I cannot help with that!
However we have created a calculator which will work out the three stamp duty rates (holiday rate, reduced holiday rate and standard) for you, so you can pick which one (or three) you present to your client.
Also below I have tried to summarise the recent changes, making it a little easier to understand for all involved.
What are the current stamp duty rates?
A stamp duty land tax holiday has been introduced which means if a property transaction completes between 8th July 2020 to 30th June 2021 the purchaser will benefit from the nil band rate threshold rising from £125,000 to £500,000.
What happens after 30th June 2021?
After the 30th June 2021 until 30th September 2021, the nil band rate will reduce from £500,000 to £250,000. If a property completes within this time frame, the purchaser will benefit from a reduced stamp duty land tax rate payment.
What happens after September 31st?
From the 1st October 2021 the nil band rate will return to the standard amount of £125,000.00.
Stamp duty for non -UK residents
As well as the stamp duty holiday rates being introduced, an increase to stamp duty for non-UK residents has also been announced.
From April 2021 any non-UK tax resident or anyone living overseas and purchasing a property in England or Northern Ireland will pay an additional 2% on their stamp duty land tax.