WEA_WEB_2021

Stamp duty holiday clock is ticking

Investment & Wealth Advice




The temporary stamp duty holiday is fast coming to a close. On 8th July 2020, Rishi Sunak, the Chancellor of the Exchequer, announced a stamp duty holiday that cut the rate of stamp duty to 0% for all properties of £500,000 or under until 31st March 2021.

What is the stamp duty holiday?

Previously, buyers had to pay Stamp Duty Land Transaction Tax on all properties over £125,000, or £300,000 for first-time buyers. For example, if you were purchasing a £500,000 property as a main residence, before the stamp duty holiday you would have paid £15,000. If you are moving home now, and providing the transaction is completed by 31st March 2020, you’ll pay £0.

For purchases above £500,000, the pre-existing stamp duty levels apply, so as it stands buyers still pay 5% tax on the element of any purchase above £500,000 – in effect, saving £15,000 on what would have been payable prior to this change.
 

What about buy-to-let?

There was a temporary reduction for buyers of additional properties, such as buy-to-let investors, in July too. The temporary rate for additional properties starts at 3% up to £500,000, which, using the example of a £499,000 property, saves the buyer £30,000 in stamp duty.

Why was the stamp duty holiday introduced?

The decision to cut stamp duty was made in light of the COVID-19 pandemic and aimed to stimulate momentum in the property market and to support those working in the property industry. According to the Nationwide House Price Index, house prices ended last year 5.3% above the level they were at when the pandemic hit the UK in March. Overall, prices rose by an average of 7.3% in 2020.

There have been growing calls for the government to extend the 31st March deadline, or at the very least phase it out so buyers already in the process of buying aren’t affected if the transaction fails to complete in time. However, in December the Treasury said that it ‘does not plan to extend this temporary relief’.

How Weatherbys can help

Time may be running out, but we can help you with all your borrowing needs. We specialise in arranging short to medium-term mortgages and loans secured against residential property, spanning owner-occupied property and buy-to-let property.

Rather than relying on the rigidity of credit scoring, we look at the bigger picture, using our personal knowledge of your financial situation to make a pragmatic, informed decision.
 

Enquire today

When you apply for a mortgage or loan with us, in addition to personal attention from our Private Banking team, you can expect:

  • a quick decision on your application
  • stress-free arrangement from start to finish
  • easy access to the people who make the decisions
  • clear, simple communication to keep you up to date
  • us to work directly with surveyors and lawyers on your behalf

BECOME A CLIENT

Important information

Your home may be repossessed if you do not keep up repayments on a mortgage or any debt secured against it. 
 
Our mortgages and loans are subject to underwriting and criteria.  You must be 18 years or over to apply.

HOW TO REDUCE YOUR ESTATE'S TAX BILL

Inheritance tax (IHT) often evokes strong feelings in people. Many argue that it is unfair to pay taxes throughout their working lives only to pay tax again when they die. Whether or not that’s a view you share, estate planning is an issue you cannot afford to ignore.

READ MORE

FIVE REASONS WHY FINANCIAL ADVICE MATTERS

Uncertainty is very much back on the agenda, and yet the effect of Covid-19 on the economy and businesses is not the only challenge that lies ahead. When it comes to your finances, going it alone can be difficult.
Bertie de Klee, Private Banker, shares five strategies to navigate your finances through the coming months.

READ MORE
Cash Flow Planning

THE IMPORTANCE OF CASH FLOW PLANNING

When it comes to planning for the future, most people tend to focus on one thing: building as much wealth as they can. This is vital, of course. If you want to meet your financial goals, then saving and investing wisely is absolutely fundamental.

The Weatherbys Investment & Wealth Advice service will help you build a cash flow plan to ensure sufficient income for life.

READ MORE

LENDING

At Weatherbys, we take a personal approach to lending, creating tailored, flexible mortgages and bespoke lending solutions to meet your needs

DEPOSITS

At Weatherbys, we take a reassuringly conservative approach to managing our balance sheet going above and beyond industry standards to ensure your money is safe and secure.

INVESTMENT & WEALTH ADVICE

We go above and beyond to help you achieve the very best financial future.