Stamp duty holidays

Read and understand!

There’s still confusion around the Corornavirus related Stamp Duty Holidays. Here’s our guide.

Covid virus - led to stamp duty holidays

Background to the Stamp Duty Holidays

Back in 2019 – before we’d heard about the Coronavirus, Stamp Duty Land Tax was a means to control the property market, the 3% surcharge introduced for investors in 2016 aimed at slowing the buy to let market down, the more recent introduction of a non-resident surcharge of 2%.

The converse of this was that when the pandemic hit and the UK entered lock-down in March 2020 the housing market stopped.  In the beginning nobody was sure if viewing property was legal or not, valuers were instructed to not enter properties which were inhabited.

It took a few months for things to settle down and the market to return to some sort of normality during which time there was absolute panic in government circles around house values.

 

As part of the Coronavirus economic plan a six month stamp duty holiday was due to end in March, then subsequently extended to the end of June – for properties under £500,000 and to the end of October up to £250,000.

So what does the Stamp Duty Holiday mean in practice?

  • Up to 30 June 2021
    Residential properties up to £500,000 will not be charged any incremental Stamp Duty Land Tax at all.
  • Additional Property Surcharge
    There was no Stamp Duty Holiday on the additional property surcharge (for investors) is still payable at 3% on all residential property.
  • Non-resident Surcharge
    As above there has been no Stamp Duty holiday for residential
  • Commercial Property
    There was no Stamp Duty Holiday on commercial (or semi-commercial) property so the normal banding applies;

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Having more than 300 lenders on our lending panel means our key task is to keep things simple for you!

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It’s a simple 6 step process, which is unique to Acorn.finance

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For property investors and property developers. Our panel of bridging lenders covers short term finance for refurbishment, conversion or development. 

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