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Original poster

0% Stamp duty threshold increasing to £500k

261 replies

Rebelwithallthecause · 06/07/2020 08:31

Just seen the news that the chancellor is due to announce temporary change to stamp duty to help things along which will mean houses under £500k will pay now tamp duty

Not too sure how long this will run for but maybe a few years

Will this change your mind on if you stay out or sell?

We had been looking to love but started considering staying and extending but this would mean a big saving and might mean that more buyers would be interested in ours too

OP posts:
spydie · 08/07/2020 13:23

[quote Maybenexttime08]@lindauk5 - gosh I hope you're right!

What % would it be for anything over £500? I want to work out what we'll save as the vendors have asked us for an extra £5k![/quote]
I'm guessing it reverts to the usual rate of 5%??

Maybenexttime08 · 08/07/2020 13:24

@lindauk5 - ah no, they did that yesterday - and we were waiting till today to decide whether to do it or not.. but I'm still not clear on anything over £500k so will have to wait for some clarity!

Livingoffcoffee · 08/07/2020 13:29

What amazing news...especially after how much stress it's been for everyone with sales part way through and dragging on because of Covid. Finally all feels positive with our completion planned for the end of the month. Purchase price for exactly £500k and now really can go in and hire local tradespeople to do some work straight away that we would've had to hold off on otherwise

thisstooshallpass · 08/07/2020 13:29

8k saving. Worth the 21 month wait...started the buying/selling headache nearly 2 years ago.

SC1989 · 08/07/2020 13:32

I moved a few days before lockdown (long gap between exchange and completion due to a nightmare person in the chain - Covid wasn't even a thing when we exchanged!). 7k in stamp duty. Bit of a kick in the teeth as I could have used that money for home improvements.

Will try not to dwell on it too much. The last few months have been walks in the local (better) area and local parks, and perhaps the last house wouldn't have sold for as much and I needed the equity to move. Ah well.....

lindauk5 · 08/07/2020 13:32

[quote Maybenexttime08]@lindauk5 - ah no, they did that yesterday - and we were waiting till today to decide whether to do it or not.. but I'm still not clear on anything over £500k so will have to wait for some clarity![/quote]
I'd like some clarity on what we have to pay for the bit over as well, not sure if it will be 2% or 5%. The gov website is always a little slow to update, it doesn't normally happen until late afternoon/evening. I keep checking though! We complete on Monday so I'm sure our solicitor will be contacting us soon as we didn't send them the money for stamp duty as we were waiting for today's announcement.

ShellsAndSunrises · 08/07/2020 13:33

*Stamp duty cut (Eng & NI only). Still tbc but it looks like...

Under £500k no duty
Next £425k (ie up to £925k) charged at 5%
Next £575k (ie up to £1.5m) charged at 10%
Above that 12%

So a £600,000 property pays 5% of £100,000 ie £5,000 rather than £20,000*

According to Martin Lewis, who has also said he believes the 3% surcharge remains for second properties.

GrumpySausage · 08/07/2020 13:37

I think they've updated the gov website. Unless I'm reading it wrong.
www.gov.uk/guidance/stamp-duty-land-tax-temporary-reduced-rates

ShellsAndSunrises · 08/07/2020 13:37

He's also said that it will apply to anyone who has exchanged but not completed, as stamp duty is crystallised on completion, incase that helps anyone.

yellowymellowy · 08/07/2020 13:40

[quote Maybenexttime08]@lindauk5 - gosh I hope you're right!

What % would it be for anything over £500? I want to work out what we'll save as the vendors have asked us for an extra £5k![/quote]
Cheeky so and so. On what basis do they feel the value of their house has gone up by £5000?! Why should they be cashing in on this immediately (probably cashing in twice if they are buying too).

Hmmph · 08/07/2020 13:40

Woohoo!!!!

Also, I’d like to pay more tax and I think tax rates should rise in the near post Covid future. However, at the moment we are desperate to move and this will help us sell our house. Any savings on buying a house will be spent.

lindauk5 · 08/07/2020 13:41

[quote GrumpySausage]I think they've updated the gov website. Unless I'm reading it wrong.
www.gov.uk/guidance/stamp-duty-land-tax-temporary-reduced-rates[/quote]
Ohh yes they have. Very happy here our bill has gone from £18,750 to £3750! Now to spend it all on other things in the house Smile

ChocoTrio · 08/07/2020 13:43

This is going to help a lot of people! It is a bit of a relief for those waiting to complete (due to building work delays, I'm in that bracket, as it happens! So yay! Feels like it compensates for the delay!).

I do feel for those who completed before this stamp duty announcement though. I can empathise it's a bit annoying for them.

Hopefully vendors don't get greedy now...

KoalasandRabbit · 08/07/2020 13:45

Very happy about this - we had to move 2 years ago due to ill health and now about to sell other one. First help we have had from government, had to lose one income completely to homeschool SN child. And looks like AirAsia we've got £1.1k with is about to go bankrupt.

Skyisbluetoday · 08/07/2020 13:52

Please someone help me do the maths. I'm too excited to believe my calculations. About to complete on £525K house. I expected to pay £16,250k and now only have to pay £1,250 - £15K less. Is this correct???

istheresomethingwrongwithme · 08/07/2020 13:54

So it does look like there is a saving for owners of multiple homes. I've attached a screenshot of the government website. 3% for the first £500k, then increments thereafter.

This has just saved us exactly £20,000 Smile

0% Stamp duty threshold increasing to £500k
BrieAndChilli · 08/07/2020 13:55

Does this mean wales still have to pay full rates 🤬 we were hoping to be FTB in the next 6 months or so. Does anyone know of wales are likely to follow suit?

Bells3032 · 08/07/2020 13:55

@Skyisbluetoday yes that is correct

Maybenexttime08 · 08/07/2020 13:59

@istheresomethingwrongwithme

So it does look like there is a saving for owners of multiple homes. I've attached a screenshot of the government website. 3% for the first £500k, then increments thereafter.

This has just saved us exactly £20,000 Smile

I 'think' you're right - we are in a similar position, but I am not an expert!
Skyisbluetoday · 08/07/2020 14:00

@Bells3032 Thank you! About to faint!
Sorry to anyone who is missing out. I'm suddenly so glad that our buyer had issues getting the morgage sorted during the lockdown!

Hardbackwriter · 08/07/2020 14:01

Trying to be happy for the other people who this will help. DH is in mourning and keeps listing what we could have done with the £7k that we (unknowingly) pissed away and could have had if we'd moved just three weeks later.

GrumpySausage · 08/07/2020 14:04

Congratulations @skyisblue that's amazing!

istheresomethingwrongwithme · 08/07/2020 14:04

I meant to write £15k, not £20k but obviously still thrilled.

Big sympathies to those who have recently completed Thanks

Bells3032 · 08/07/2020 14:04

I am so pleased...hopefully it means my buyer will go through - they're a first time buyer but buying it as a BTL to help fund their rent.

We have just started looking but hoping to buy in the next few months. We better get on and find something by like October if we want it to go through before the deadline though.

I completed on my previous home literally days before they brought in the first time buyers discount and was so peeved off as it would of saved me a £5k i really needed. but this time i save £15k.

Better hop to finding a house!