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In the latest budget, the Government is continuing to support homebuyers with the announcement of an extension to the stamp duty holiday and the return of government-backed 95 percent mortgages.
Meaning there’s even more help to purchase your dream Albemarle home.
Stamp Duty Land Tax (SDLT) is a payment any person buying a property or land over a certain price in England and Northern Ireland must pay to HM Revenue and Customs (HMRC), the tax is different for Scotland and Wales.
If you are buying a residential property there are different rates of SDLT if:
SDLT applies when a property purchase price reaches the threshold. Therefore if you purchase a property for less than the threshold there is no SDLT to pay.
You can use the HMRC Stamp Duty Land Tax calculator to work out how much tax you’ll pay.
The SDLT is payable within 14 days of completion of the purchase of your property. Your solicitor usually files your return and pays the tax on your behalf on the day of completion and adds the amount to their fees. They will also claim any relief you are eligible for, such as if you are a first-time buyer.
In the first wave of measures to support homebuyers during the Covid-19 pandemic the Government introduced the first stamp duty holiday up to the end of March 2021. This provided much needed help for homebuyers across England and in order to continue this support the Government has now announced a further extension in differing forms up to the end of September.
So, this means that the stamp duty holiday will still be available on all property purchases up to the value of £500,000 until June 30. After that, from July 1 until September 30, the tax relief holiday threshold will be reduced to £250,000.
From 1 October, the stamp duty holiday will end and the threshold will revert back to any property over £125,000.
In addition to the stamp duty holiday the Chancellor announced the return of 95 percent mortgages, a scheme to support buyers who are making the move to get onto the housing ladder for the first time by reducing the amount of deposit required.
By backing mortgage lenders to offer a 95 percent mortgage, it will enable buyers to place down as little as a five percent deposit on properties under the value of £600,000.
Commenting on the latest budget announcement Albemarle Homes managing director, Darryl Barker, said: “This is welcome news for the industry and purchasers alike. Supporting our home buyers is something we are very passionate about and these measures will certainly provide even more help to those wishing to move up the property ladder or begin their home owning journey.”
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