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Stamp Duty Holiday – Save Up To £15k

Stamp Duty Holiday – Save Up To £15k

The Buy To Let Broker Stamp Duty Holiday
Advice, Coronavirus

From today, you could save up to £15,000 with the newly launched Stamp Duty Holiday until 31 March 2021. 

Announced by Chancellor Riski Sunak earlier today as part of the Summer Statement, this economy-boosting measure sees the Nil Rate Band threshold for Stamp Duty Land Tax (SDLT) increased from £125,000 to an impressive £500,000 for all properties in England and Northern Ireland. 

Everyone is eligible for this cut according to Gov.uk, so homeowners and landlords alike can save. Landlords will still be subject to the additional 3% Stamp Duty when purchasing any Buy to Let, but with the potential savings of up to £15k at the highest nil band at upto £500,000, we know this announcement will be welcomed with warmth. 

Confirmed as a temporary nine-month incentive to stimulate the property market in the aftermath of the COVID-19 pandemic and house prices reportedly falling, there is now even more opportunity for you to grow your property portfolio and generate maximum returns.

To illustrate just how money-saving this incentive could be, here are the estimated figures if you are purchasing a £450,000 Buy to Let property: 

Before AnnouncementStamp Duty Hiatus 
BandRateAmountRateAmount
£000,000 – £125,0003%£3,7503%£3,750
£125,000 – £250,0005%£6,2503%£3,750
£250,000 – £500,0008%£16,0003%£6,000
Total5.8%£26,0003%£13,500
>> TOTAL SAVING OF £12,500 <<

The new rates are as follows: 

Investor

Next Time Buyer

FT Buyer

Purchase Price

Before SDH

With SDH

Before SDH

With SDH

Before SDH

With SDH

Up to £125,000

3%

3%

0%

0%

0%

0%

£125,000.01 – £250,000

5%

3%

2%

0%

0%

0%

£250,000.01 – £500,000

8%

3%

5%

0%

0% – up to £300k
5% – from £300k-£500k

0%

£500,000.01 – £925,000

8%

8%

5%

5%

5%

5%

£925,000.01 – £1,500,000

13%

13%

10%

10%

10%

10%

>£1,500,000.01

15%

15%

12%

12%

12%

12%

Matt Hardman, Co-Director commented:

“The chancellor is clearly very committed in his cause to stimulate the economy, this is just one element in a range of spending measures designed to boost the economy, at The Buy to Let Broker we are already experiencing unprecedented levels of client demand in the wake of the pandemic, but we are 100% committed to deliver our clients intentions and will continue to do just that, with this added incentive for buyers”

If you would like to find out just how much you could save and your potential borrowing levels, get in touch today to speak to one of our BTL experts