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New / temporary Stamp Duty Rates

Residental purcahse in excess of £500,000

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I have just had an offer accepted to purcahse a new house for £675,000.  Not BTL / not second home.

Will I now just pay SDLT on £175,000?   If so, at what rate?

Is this too good to be true ?

Thanks

Replies (6)

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Scooby
By gainsborough
08th Jul 2020 17:34
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By Paul Crowley
08th Jul 2020 20:53

No

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By Justin Bryant
09th Jul 2020 09:31

The Government has essentially just handed you £15k on a plate (i.e. without any real justification whatsoever), so well done, even though (and let's be brutally honest here) you obviously didn't need that cash as an incentive or anything and so the Government could have used that money instead to benefit some poor homeless person etc. but hey, that's free market capitalism for you (and I'm not a Marxist/socialist, just an independent objective observer). Again, well done (and I mean that sincerely).

Somewhat ironic isn't it that HMRC always use the "too good to be true" phrase when denouncing tax avoidance, yet are perfectly happy to indulge in unbelievably generous tax-free opportunities themselves!

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Replying to Justin Bryant:
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By philaccountant
09th Jul 2020 10:38

Ridiculous isn't it.

And all home buyers benefiting from this that are taking out a mortgage will presumably have their mortgage amount reduced proportionately by the amount of SDLT. So there's no big influx of economic activity as, for most, it will be a few quid each month off the mortgage bill for already fairly well off people.

It's not like dumping £15k in their pockets so they'll go out and buy a new car or build an extension.

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Replying to philaccountant:
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By Justin Bryant
09th Jul 2020 11:00

Yes. Apart from the windfall people (where the position is summed up perfectly in the faces of the two sets of people in the link below) the change merely makes sellers richer than they would otherwise be (like under the other dumb help to buy scheme):
https://www.bbc.co.uk/news/business-53340858

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blue sheep
By NH
09th Jul 2020 10:01

Yes, like so much with the various government responses, there have been some winners that didnt really need the funds, and some losers that really did need them.
The most bizarre one for me was the 10/25k rates grant

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