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Stamp Duty ‘misunderstanding’ explained by Mansfield mortgage broker

Posted onPosted on 24th Jun

Mansfield mortgage broker Lewis Shaw says a significant percentage of his clients believe, incorrectly, that the Stamp Duty holiday will end on 30th June.

He said: “That’s categorically not the case. On 30th June, it’s only the first phase of the SDLT (stamp duty land tax) holiday that ends. This gives a ‘nil rate band’ on property purchase prices of £500,000.

“So as long as you have legally completed on your purchase by 30th June and it’s not priced above £500,000, then there is zero Stamp Duty to pay.

“However, from 1st July, the Stamp Duty holiday continues, but at a lower nil rate band of £250,000 until 30th September. This means that, even if you are buying above £250,000, you can still save a few thousand pounds in Stamp Duty.

“For example, if the purchase price of your ideal home is £325,000, if you manage to complete on your purchase before 30th September, the Stamp Duty payment will be £3,750 rather than £6,250, still a significant saving of £2500.

“Many of our clients, and presumably a significant percentage of people around the country, believe that the Stamp Duty holiday is dead and buried as of the end of this month. That’s not the case.

“In reality, the SDLT holiday continues for another three months and there are still significant savings to be had, albeit at a lower level.

“Endless speculation around what will happen to the property market once the first phase of the Stamp Duty holiday is over has overshadowed the hard facts and caused a lot of confusion. In short, if you’re thinking about buying a home, all’s not lost. A couple of thousand pounds in savings can buy a lot of Ikea furniture for your new home, or take off some of the financial pressure.”