How the stamp duty holiday affects second homes and buy-to-let properties


Rishi Sunak used the Budget to extend the stamp duty holiday until the end of June. The tax break, which the Chancellor introduced in July 2020, was brought in to help boost the housing market, which had been suffering due to the pandemic.

It had been due to end on 31 March, leaving many homebuyers rushing to try and complete their purchases. But the deadline will now be pushed back to 31 June.

Under the current scheme, buyers do not have to pay stamp duty on the value of a property up to £500,000, rather than £125,000. It allows people to save up to £15,000 in taxes when purchasing a home. After 31 June, the value of a property buyers do not have to pay stamp duty on will be reduced to £250,000 – still double the usual rate. It will return to its normal £125,000 threshold from 1 October.

Buy-to-let landlords and second home buyers are eligible for the tax cut. However, they still have to pay the additional 3% rate that has always been in place for second home buyers. You will not have to pay the 3% tax if the property you are buying is replacing your main residence and that has already been sold. If you are yet to sell your main property when you purchase the replacement you will have to pay the additional rate, but you can apply for a refund if you sell your original home within 36 months.

Source: Techlink.

Articles on this website are offered only for general information and educational purposes. They are not offered as, and do not constitute, financial advice. You should not act or rely on any information contained in this website without first seeking advice from a professional.

Past performance is not a guide to future performance and may not be repeated. Capital is at risk; investments and the income from them can fall as well as rise and investors may not get back the amounts originally invested.

You are now departing from the regulatory site of Finura. Finura is not responsible for the accuracy of the information contained within the linked site.


Other News

How to talk to teenagers about money

The right financial education can make your children feel more confident about money so, when they are older, they have the knowledge and skills to meet their financial goals.

Podcast: How markets perform when rates are cut

In the latest Investor Download, Duncan Lamont, Head of Strategic Research at Schroders, takes us through what happens in markets when interest rates are cut.

Securing Your Legacy: The Importance Of Creating A Will To Safeguard Your Wealth

In the hustle and bustle of daily life, it can be easy to overlook essential aspects of financial planning. One such crucial component is creating a Will, a document that ensures your wealth is distributed according to your wishes after you pass away.