Buyers of primary residences will be delighted to hear that the stamp duty holiday on the first £500,000 of a property’s value has been extended until the end of June 2021, as part of The Chancellor’s March 2021 Budget announcement. This means there’s still time to make a substantial tax saving if you purchase an apartment at Aspen Mews in Chigwell, however, you will need to start the sales process quite quickly in order to complete your purchase on time.
We’ve put together a simple explanation of what it all means for you, and how much you could save over the next few months.
What is Stamp Duty?
Officially known as Stamp Duty Land Tax (SDLT), this is a levy that most property buyers have to pay within fourteen days of purchasing an apartment or a house in the UK. The amount owed depends on the value of the property, and usually only homes worth up to £125,000 are exempt.
What is the Stamp Duty Holiday?
In July 2020, The Chancellor announced a temporary Stamp Duty holiday, which meant the zero per cent rate was increased from £125,000 to £500,000, allowing for a potential tax saving of up to £15,000 for property buyers. This was only supposed to be a short-term measure until 31st March 2021, but on Wednesday 3rd March 2021, The Chancellor extended the deadline to 30th June 2021. This will not only allow purchasers already in the middle of a sale to benefit from the tax saving, but also for new buyers too – as long as you complete by the deadline.
The stamp duty rates until 30th June 2021 for residential properties purchased by individuals:
|£500,001 – £925,000||5%|
|£925,001 to £1.5m||10%|
From 1st July 2021, it will still be possible to save on stamp duty, but the zero-rate threshold will be reduced from £500,000 to £250,000, meaning your tax saving won’t be as high as before.
The stamp duty rates between 1st July 2021 and 30th September 2021 for residential properties purchased by individuals:
|£250,000 – £925,000||5%|
|£925,001 – £1.5m||10%|
Assuming there are no more stamp duty holiday extensions, the zero-percent rate will return to £125,000 from October.
How much money can you save between now and October at Aspen Mews?
We’ve put together a handy table for you to see the huge difference in stamp duty owed between now and30 June when compared to July onwards:
|Aspen Mews price examples||Stamp Duty Payable until 30 June 2021||Stamp Duty Payable |
1 July – 30 Sep 2021
|Stamp Duty Payable from 1Oct 2021|
To arrange a physical or video tour of the marketing suite at Aspen Mews, or for any questions about how the stamp duty holiday will affect you, please contact the sales office on 0800 118 2541. Meanwhile you can read more about our exquisite collection of boutique homes here.