“It is impossible to be sure of anything in life, but death and taxes” – Christopher Bullock
… This month it is coming to the end to avoid stamp duty tax! So- where does stamp duty come from and what is it? Stamp duty was originally put in place in 1694 to pay for the war against France; when the UK sent off newspapers, lottery tickets, hats, silver and gold it had to be sent off ‘tax paid’. The government never got rid of this tax and it is now used when you buy property or shares because you are paying for the re-registration of your shares or property.
From the 8th July 2020 to the 31st of March 2021 you only pay Stamp duty land tax (SDLT) when you buy a property for over £500,000. These rules apply for if you’re a first time buyer or if you’ve previously owned a property.
Does this mean that if you could have saved money? In theory? – yes. In reality? – maybe not. Because sellers know that buyers won’t be spending as much on tax for the next month, property prices are more expensive than they usually would be because sellers know that the buyers will pay for it. Non the less- it is always a good time to buy property as the market is always on a incline.
Are you thinking of buying a property soon? Get expert advice from our solicitors at Crane and Faris to find out what you can save in tax and how you can protect your loved ones.