Until the 31st March 2021 the threshold for Stamp Duty has been increased to £500,000 meaning a saving of up to £15,000 when you purchase an investment property.
Huge Break for Investors and Landlords
What Does This Mean For Investors?
Effective immediately and running until 31st March 2021, stamp duty will be zero on any property purchase below £500k for home movers and first time buyers. If you are an investor / Landlord or simply looking to purchase an additional property you will still have to pay the 3% surcharge for additional dwellings.
This is the ideal time to expand your portfolio.
This could represent a tax saving of up to £15,000 which is a huge sum. You could use this saving to reinvest in additional property, renovate or improve your current portfolio allowing it to command a higher rental, or simply keep the costs of purchasing as low as possible to maximise yield.
To put these changes into context, 16% of sales in England were exempt from stamp duty last year, this would have been nearer to 89% if this stamp duty holiday had been in place.
It's a fantastic step to keeping the housing market moving. It's the perfect time to source new investment opportunities as we anticipate a rush to market to take advantage of this saving. Conversely this also makes it an ideal time if you are looking to reduce your portfolio by selling off some of your properties.
Our MD, Ian Preston, being interviewed by Sky News about the new Stamp Duty Changes
How Much Can You Save?
The most you will be able to save through this stamp duty adjustment is £15,000 which would apply to properties valued at £500k or more. If you'd like an idea on what you will be able to save, we've created a handy table below.
|Purchase Price||Old Stamp Duty||New Stamp Duty||Saving|
How much is your property worth?
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