From our resident Mortgage Adviser Rachael Smith

Want to gift to grandchildren for their House deposit?

We can advise on gifting within annual exemptions, from normal expenditure and gifting to reduce potential inheritance tax. Consider gifts from savings, assignments from Investment Bonds or equity release.

Stamp Duty:

The main stamp duty holiday has now ended in England and Northern Ireland. You can add stamp duty to your mortgage but it’s best that you don’t, as this means a bigger mortgage debt. Remember to pay your stamp duty on time – you’ve got 14 days from completion!

From 1 July until 30 September, no stamp duty will be due on the first £250,000 of any primary residential property (£300,000 if you’re a first-time buyer), provided the property you’re buying costs £500,000 or less:

Up to £250,000 – Zero
The next £675,000 (the portion from £250,001 to £925,000)  – 5%
The next £575,000 (the portion from £925,001 to £1.5 million) – 10%
The remaining amount (the portion above £1.5 million) – 12%

You need to have completed your property purchase by 30 September to benefit from the stamp duty holiday in its current format. If you exchange on or before 30 September, but complete after 30 September, you’ll have missed the deadline and will need to pay the normal rate of stamp duty:

Up to £125,000 – Zero
The next £125,000 (the portion from £125,001 to £250,000) – 2%
The next £675,000 (the portion from £250,001 to £925,000) – 5%
The next £575,000 (the portion from £925,001 to £1.5 million) – 10%
The remaining amount (the portion above £1.5 million) – 12%

Stamp Duty rates on second homes:

For purchases from 1 July 2021 to 30 September 2021, new temporary rates are in place:
3% between £40,001 to £250,000
8% between £250,001 to £925,000
13% between £925,001 to £1.5 million
15% on any amount exceeding £1.5 million

From 1 October 2021 onwards, the stamp duty rates for second and additional property purchases will return to the original rates before Covid:
3% between £40,001 to £125,000
5% between £125,001 to £250,000
8% between £250,001 to £925,000
13% between £925,001 to £1.5 million
15% on any amount exceeding £1.5 million

FOR FURTHER INFORMATION ON THIS TOPIC, PLEASE CONTACT ONE OF OUR ADVISERS

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