If you are considering moving home in the second half of 2020/21, you are by no means alone.
In the month leading up to 8 August 2020, 149,000 properties were put on the market – the highest number since before the financial crash in 2008.
This might be attributed to the pent-up demand caused by the lockdown, as well as owners falling out of love with their home after being confined to it for so many months.
But Chancellor Rishi Sunak’s cut to stamp duty land tax (SDLT) announced in July 2020 will have persuaded many people who had been thinking about a move that now is a good time to do it.
Despite the headline of a stamp duty holiday in England and Northern Ireland, it does not mean in every case there will be no tax to pay, while SDLT does not apply in Scotland or Wales.
Here’s a look at how the stamp duty holiday works, as well as other tax considerations. On residential property transactions, we are talking about the potential for SDLT on the purchase and capital gains tax on the sale.
It is worth flagging up that these are rather different depending on whether you are dealing with your own primary residence, or it is some other kind, such as investment property or perhaps a holiday home.
Posted by Lambert Chapman
The views expressed in this article are the personal views of the Author and other professionals may express different views. They may not be the views of Lambert Chapman LLP. The material in the article cannot and should not be considered as exhaustive. Professional advice should be sought in connection with any of the issues contained in the article and the implementation of any actions.