Stamp duty land tax holiday
Residential property purchasers in England and Northern Ireland won’t pay any stamp duty on purchases with a value up to £500k from 8 July 2020 – 31 March 2021 unless they already own another residential property. (Those who own a residential property already will still be subject to the 3% additional charge).
This could be a welcome break for many wishing to downsize, perhaps for inheritance tax planning purposes or to help their children get onto the property ladder.
For example, some may wish to downsize and release funds to either gift to family or invest in a different asset which attracts an inheritance relief, thereby removing the value from their estate – a potential saving of 40%.
In addition, those considering transferring properties into limited companies may also benefit financially from the holiday. Over the past few years, buy to let landlords have seen numerous changes to the tax rules which has meant many now consider owning property in a company where the tax rules can be more attractive as opposed to owning them personally.
If you would like advice on how you can benefit from this temporary reduction, please get in touch.