Since September 2022, home buyers in England and Northern Ireland have benefited from a stamp duty holiday, which was introduced by the government to keeping the property market moving following the Covid-19 pandemic. The stamp duty holiday has enabled more people to afford to become first-time buyers, or move to a bigger home, as it can save thousands of pounds on the cost of moving house.
The successful initiative has seen a temporary increase to the thresholds at which home buyers would owe stamp duty on the value of their property; as a result, all buyers pay less or no stamp duty. However, the holiday is expected to come to an end in 2025 – here’s everything that you need to know so that you don’t miss out.
When does the stamp duty holiday end?
The current iteration of the stamp duty holiday was introduced on 23rd September 2022, and will end on 31st March 2025. In order to benefit from the stamp duty holiday, buyers must complete on the purchase of their home before the end date.
What is stamp duty and who is it paid to?
Stamp duty – also known as stamp duty land tax (SDLT) – is a sum of money that is paid to the government upon the purchase of a property, whether it’s a new build or existing home. What you’ll pay, or whether you’ll pay at all, is conditional on the final property purchase price and your status as a buyer.
A stamp duty land tax return must be filed, and any due stamp duty paid within 14 days of completion on your home, and this is typically arranged by your solicitor.
How does the stamp duty holiday work?
Under the current holiday, there is no stamp duty to pay on homes worth £250,000 or less, as long as you’re buying the home to live in as your only residence and you’ve owned a home before. For first-time buyers, there is an even higher threshold of £425,000 before stamp duty is due.
Buyers are only liable to pay stamp duty on the portion of their home’s value that falls above the threshold. The amount of stamp duty payable will depend on the total purchase price of the property – take a look at Bellway’s stamp duty guide for full details.
Can I still take advantage of the stamp duty holiday to buy a new build home?
Yes, as long as you complete on the purchase of your new home before the end of the stamp duty holiday on 31st March 2025.
So if you’re thinking about buying a new build home, now is a great time to start your search as you’ll need to be mindful of the limited timescale for reserving and completing on your home. Your sales advisor at your chosen Bellway development will be able to assist you with choosing a new home that is expected to be ready before the end of the stamp duty holiday, and answer any questions that you have regarding your new home, at every step of your journey.
Visit the Bellway website to find out more about how stamp duty works when buying a property, and the unmissable buying schemes and incentives that are available to make your perfect new build home more affordable – whether or not you take advantage of the stamp duty holiday.
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