We have seen a huge increase in demand for homes in the Bishop's Stortford area since the Stamp Duty holiday announcement.
This is because until 31 March 2021, you’ll pay no Stamp Duty on the purchase of your main property costing up to £500,000. If the property you’re buying costs more than £500,000, you’ll pay Stamp Duty based on the revised rate bands, below. If you’re purchasing additional properties you will still have to pay an extra 3% in Stamp Duty on top of the revised rates for each band.
For example, if you buy a house for £575,000, the Stamp Duty Land Tax you owe is calculated as follows:
0% on the first £500,000 = £0
5% on the final £75,000 = £3,750
Total SDLT = £3,750
This is a saving of £15,000 based on the Stamp Duty rates that were in place before 8 July 2020.
Stamp Duty rates*
Stamp Duty on second homes
If you’re buying an additional property, such as a second home or certain buy-to-let properties, you’ll still have to pay an extra 3% in Stamp Duty on top of the revised rates for each band up until 31 March 2021.
This increased rate applies to properties bought for £40,000 or more.
It doesn’t apply to caravans, mobile homes or houseboats.
You must have completed your property purchase by 31 March 2021 to qualify for the new revised rates on Stamp Duty. Any purchases completed before the chancellor’s announcement on 8 July 2020 will continue to pay Stamp Duty rates valid at that time.
Repayment of higher rates of Stamp Duty
If you buy a new main residence but there’s a delay in selling your previous main residence, you’ll have to pay the higher Stamp Duty rates as you’ll now own two properties.
However, if you sell or give away your previous main home within 3 years of buying your new home you can apply for a refund of the higher SDLT rate part of your Stamp Duty bill.
You can request a refund for the amount above the normal Stamp Duty rates if:
you sell your previous main residence within three years, and
you claim the refund within three months of the sale of your previous main residence, or within 12 months of the filing date of your SDLT tax return, whichever comes later.