There was great news for homebuyers recently when Chancellor Rishi Sunak announced new stamp duty rules for properties costing up to £500,000 in England and Northern Ireland.
The Chancellor’s stamp duty holiday means that up to 31 March 2021, almost nine out of ten property transactions will no longer be subject to stamp duty.
Who benefits the most?
Mr Sunak’s generous offer has provided fresh motivation for homebuyers who previously delayed their decision to move.
Buyers in London and the South East, where properties are more expensive, now have the chance to save almost £15,000 on their purchases and consequently many are now racing to take advantage of this welcome temporary tax change.
How the new Stamp Duty rates could work for you
It’s important to remember that the Stamp Duty holiday won’t just help people buying properties costing up to £500,000. If you buy a more expensive property, you will still benefit from the ‘holiday’ rate, although you will pay the same percentage as before on the taxable tiers above £500k.
The new stamp duty in the UK: how does it work for you?
- up to £500,000 – no duty payable
- you will pay 5% duty, but only on the portion between £500,000 and £925,000
- you will pay 10% duty, but only on the portion between £925,001 and £1.5m
- Properties above £1.5m will incur 12% duty
However, if you are buying an additional property under standard Stamp Duty rules in the UK, a 3% surcharge is payable. This levy still applies to the new holiday rates.
City dwellers on the move
The timing of Rishi Sunak’s stamp duty offer is particularly useful for homeowners looking to leave city life behind in favour of a greener and more peaceful environment.
Working from home has proved a remarkable success during the lockdown. So much so that many businesses are now questioning how much time their employees need to spend in the office. With the prospect of more flexible working arrangements in future, many workers are choosing to move to commutable areas that offer a better lifestyle.
Surrey: perfect for your work/life balance
With a wealth of beautiful countryside, tranquil villages and towns with a strong community feel, Surrey offers you the perfect destination that transforms your much-needed work/life balance.
If you’d like to know more about moving to Surrey, why not contact our sales team at Grosvenor Billinghurst? We’ll be happy to show you some fantastic properties for sale, available right now.