The Chancellor’s announcement that he is increasing the stamp duty threshold to £500,000 until 31 March 2021 is welcome news for homebuyers and for the economy, but it also brings opportunity for our property investor clients.
The changes mean that homebuyers will not pay stamp duty on property purchases up to £500,000 and, whilst the 3% surcharge for additional properties remain in place, it does mean that the cost of purchasing an investment property will reduce.
In real terms, this means that the stamp duty payable on a Buy to Let purchase on a £300,000 transaction would be £9000, as opposed to £14000 previously. Significantly reducing the cost of purchase and having a positive impact on the expected return on investment.
The following rates apply for additional properties:
|Property or lease premium or transfer value||SDLT rate|
|Up to £500,000||3%|
|The next £425,000 (the portion from £500,001 to £925,000)||8%|
|The next £575,000 (the portion from £925,001 to £1.5 million)||13%|
|The remaining amount (the portion above £1.5 million)||15%|
Sarah Woolf comments: ‘This reduction in SDLT costs, alongside lower cost of borrowing and a strong appetite from our lending partners, make it the perfect time for our investors to make their move and for portfolio landlords to look to expand their portfolio.’
Talk to us today about your next property purchase.
Nic Rotton – Email: Click Here 07909 690190
Sarah Woolf – Email: Click Here 07971 349 126