Tag: tax

15th December 2020

Foreign Tax: Be ready for changes

For many years the UK government has talked about increasing the tax for foreign home buyers but it will soon become a reality.

From the 1st April 2021 all overseas buyers will need to pay an additional 2% in tax, in addition to paying the stamp duty on a property. It is important to remember when you are looking at a property that you will need to work out your stamp duty liability and add an extra 2% on top of the purchase price.

On a £500,000 property, this tax would equate to an additional £10,000. Important to note as well that this tax is applicable for all buyers, regardless of their intentions to live in the property or use it as a buy-to-let.

Do you want to learn more? Feel free to reach out to us today!

15th December 2020

Stamp Duty Holiday: Time to Act

One of the most exciting aspects of the year 2020 for property is the stamp duty holiday. If you are a seller or a buyer, now is the time to act to take advantage of this government incentive.

In short, the UK government has waived the stamp duty tax for buyers purchasing property under £500,000 where the property is the main home. That said, investors benefit too as the tax has halved for buy-to-let landlords. For a £500,000 home, if it is your first home, you would currently pay no stamp duty. If it’s your second home, you’d be saving too, at 3%. That works out to a £15,000 savings, which is quite a large benefit when normally your stamp duty would double that amount.

In order for you to take advantage of the stamp duty break you will need to complete the purchase by the 31st March 2021. If you work backwards then, you really need to have your offer accepted in the next few weeks if you are purchasing with a mortgage. For cash buyers there is a bit more time, perhaps offering you until February or so.

If you are interested in taking advantage of this break, or have any questions, feel free to reach out to a member of our team.