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The recent announcement of the Stamp Duty Land Tax (SDLT) holiday is a welcome discount to those looking to relocate. However, whilst a saving for many, there are bound to be some who lose out.
The Chancellor’s announcement primarily benefits those who are buying their first property or replacing their main residence. After 8 July this year, if a dwelling is bought by a first time buyer or individual replacing their main residence for £500,000 or less, no SDLT is payable. If the purchase price is above £500,000, the amount payable is still less than it would have been before. The second home and buy-to-let markets also benefit from the reduced rates and which are currently in place until 31st March 2021.
The recent Covid-19 pandemic has made the urban population appreciate the countryside more with the attraction of green spaces and fresh air on the doorstep. With the shift in working practices resulting in more people wanting to work from home, coupled with the temptation of country retreats well away from the urban pandemic hot spots, the rural property market is predicted to take off. Those who may miss out are first time buyers as they are out-bid on price.
The SDLT holiday offered should be used to its full advantage whether you are a buyer or seller. Now may be the best opportunity to buy the freehold of a rented property or diversify into purchasing holiday lets. Whilst there isn’t any tax relief for sellers, selling at a time when the market is more attractive to buyers because of the SDLT relief and when the housing stock is already at a low, all contribute to improving the prospects of a sale at an enhanced price.
Those with derelict and redundant outbuildings ripe for conversion may also be able to turn the relief to their advantage. With what are called ‘Class Q’ permitted development rights, sellers and developers are able to apply under a streamlined process for change of use to residential. The SLDT holiday may be the trigger to turn plans into reality.
Whatever you decide to do, ensure that you appoint the correct professionals to deal with your transaction as you don’t want to experience a ‘holiday’ you would rather forget!
This article first appeared in the Yorkshire Post Country Post supplement on 8th August 2020
Our articles are intended for general information purposes only and are not a substitute for professional advice tailored to your specific circumstances. We are always very happy to discuss any plans, issues or concerns you may have and to clarify how we might be able to help. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article.
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