The Chancellor has announced a Stamp Duty holiday to take immediate effect and which will run until the end of the financial year. The details have been published and the official online Stamp Duty calculator has been updated so you can calculate the tax you will owe.
SDLT is due on completion – unless possession has been taken or 90% or more of the price has been paid (the two triggers for ‘substantial performance’). the nil band rate which until today applied on the first £125,000 has been increased to £500,000 for any buyer. The additional 3% higher rate still applies to those buying a buy-to-let property or a second home.
Reaction will be positive in the main although the advantage that first time buyers used to have has now been removed. They will find it harder to compete with investors who traditionally have the necessary deposits and can get better mortgage terms.