As you know, last summer the Government temporarily increased the amount at which stamp duty is paid to £500,000, up until 31st March 2021. For property investors, this meant a flat rate of 3% was payable, which has proven to be a fantastic saving.
In this month’s Budget, Rishi Sunak announced that this has now been extended to 30th June 2021, which is great news for our investors.
He went on to announce that as of 1st July 2021 the temporarily increased amount at which stamp duty is paid will change to £250,000, up until 30th September 2021.
So what does this mean for those completing on investment properties within these timeframes? In a nutshell, great savings are still to be had thanks to the extended stamp duty reductions.
£150,000 property – £500 saving
£200,000 property – £1,500 saving
£250,000 property – £2,500 saving
As of 1st October, stamp duty will then return to the usual rates for second and subsequent property purchases.
£0 to £125,000 - 3%
£125,000 to £250,000 - 5%
£250,000 to £925,000 - 8%
If you would like to talk to us about how this affects your potential property investments, please get in touch with us!
Ancojada Limited trading as Ancojada Group is not authorised or regulated to provide financial advice.
All financial advice is provided by other regulated businesses.
The value of tax reliefs depends on your individual circumstances.
Tax laws can change.
The Financial Conduct Authority does not regulate tax advice.