What impact will the stamp duty holiday have on the North Devon property market?
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Following the government’s announcement that for a temporary period there will be no stamp duty to pay on property purchases up to £500,000, North Devon conveyancer Louise Langabeer looks at what this is likely to mean for property buyers in North Devon.
Stamp duty, or stamp duty land tax (SDLT) to give it its full title, is a tax paid by the purchaser of property or land. The amount of tax payable is based on the purchase price.
Until the announcement of the stamp duty holiday, stamp duty was payable on any property costing more than £125,000, unless the purchaser was a first-time buyer when the threshold rose to £300,000.
Under the government’s new rules the starting threshold is increased to £500,000 on all transactions taking place before 31 March 2021. The aim is to energise the property market following the blow dealt to it by the coronavirus pandemic when property transactions were frozen.
For property that is sold for more than £500,000 stamp duty is now charged at 5% on the additional slice, up to £925,000.
Of particular interest to many property owners in North Devon, this change will apply to second homes, though those properties will still attract a 3% surcharge. Landlords and investors are also set to benefit.