New data from our mortgage partner Trussle suggests that homebuyers in some English postcodes could still miss the stamp duty property tax deadline on September 30 if they begin the property purchase process within next days.
As our article shows, the four UK countries have each benefited from easing of their property tax regimes during the Covid crisis, with zero rate brackets (where no tax is payable) being significantly increased.
These ‘public holidays’ are now over in Scotland (March 31) and Wales (June 30), but in England and Northern Ireland the zero rate bracket – normally set at £ 125,000 – will remain at 250,000. £ until September 30.
From 1 October it will drop to £ 125,000 and stamp duty will be levied at 2% on the amount paid between £ 125,000 and £ 250,000. This means that the potential savings for someone buying a property costing over £ 250,000 would be £ 2,500 (£ 125,000 x 2%).
Trussle says it typically takes around 140 days to complete the purchase of a property. At the beginning of July, there are only 92 days left before the stamp duty deadline. But the broker has identified several zip codes where turnaround times, on average, sit comfortably within the timescale.
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Miles Robinson at Trussle said, “The Stamp Duty Holiday has been the driving force behind the real estate market for the past year.
In an era when many real estate transactions expected households to tighten their finances, this prompted people to relocate rather than stay put. As a result, we have seen record levels of demand throughout the supply chain, resulting in strong price growth throughout the year.
“As the ‘full’ stamp duty holiday comes to an end, many might think there is no savings to be made. But it’s important to remember that there is a reduced rate of stamp duty until September 30. For those who still want to move and can move quickly, not paying stamp duty on the first £ 250,000 can still mean big savings. “