The Stamp Duty Tax break, or otherwise known the Stamp Duty Holiday, meant that thousands of home buyers were able to save money when buying their house.
And, it is here to stay a little longer. But, what does that mean?
Stamp Duty is a tax that you pay on the land you are buying, to put it simply Stamp Duty is a tax that you pay the government when you buy a house. When you buy property the stamp duty is calculated by a percentage when the property value is over a certain threshold. For example, if you bought a property over £125,000 you had to pay Stamp Duty tax of 2%. The percentage increases with the price of the house due to the band it sits in.
However, due to the Stamp Duty Holiday, you don’t have to pay tax on anything below £500,000!
The Stamp Duty Holiday extension means that those buying property between now and until September 2021, home buyers can avoid Stamp Duty charges of up to £15,000. Thus far, on average most home buyers have saved an average of £4,660.
The additional extension on Stamp Duty, that was originally due to end by April, is thought to have increased the pace of homebuying since the first covid-19 lockdown which slowed down moves due to higher unemployment rates, travel restrictions, and changing house location patterns.
This extension has given the housing market a much-needed boost and helped encourage home moves at a time where it had almost come to a standstill.
Chancellor Rishi Sunak who announced the extension has said; “The stamp duty cut has helped hundreds of thousands of people buy a home and supported the economy at a critical time.” As a result, there was a 24% rise in house buying according to HMRC.
The Stamp Duty tax holiday, that normally brings the government £12b a year, has helped get the people and housing market back on its feet.
We’ve seen this too. Since the launch of Moovstuff we’ve helped lots of moovers move their stuff to new homes to take advantage of the Stamp Duty Holiday. You can calculate your own Stamp Duty Land tax with the gov.uk calculator here.
If you are looking for help with a home move, we can offer you great prices to help you save even more on your move. We are the UK’s simplest man and a van service and can get your stuff on the road on a day and time that suits you. Our Moovstuff professionals are experts at heavy lifting and loading, and will help you throughout your move. Book today at Moovstuff.com