Chancellor Rishi Sunak recently announced a stamp duty holiday on property purchases upto £500,000- which is great news for UK residents hoping to get on the property market.
It means you can buy more expensive properties without have to shell out thousands in tax.
Here is everything you need to know about the stamp duty holiday- as well as some houses for sale in East Lancashire which are currently under the tax threshold.
What is stamp duty?
Before March 2020, property owners had to pay tax on all property over £125,000- or £300,000 for first-time buyers.
Property between £125,001-£250,000 would be taxed by 2%, £250,001 to £925,000 by 5%, £925,001 to £1.5 million by 10%, and anything above £1.5 million by 12%.
Under the new measures, properties under £500,000 won’t be taxed at all.
You pay 5% on £500,000 to £925,000, 10% on £925,000 to £1,500,000, and 12% above £1,500,000.
This change was announced by Rishi Sunak last week (8 July) in an attempt to help the UK economy bounce back from the coronavirus pandemic.
1/ I have decided today to cut stamp duty.
— Rishi Sunak (@RishiSunak) July 8, 2020
Right now, there is no stamp duty on transactions below £125,000 (or £300,000 for first-time buyers). I am increasing the threshold to £500,000. #PlanForJobs pic.twitter.com/DN3UnOJd1u
This measure will be in place right up until March 31 2021- so if you are thinking of investing in property, now is the time to do it.
East Lancashire properties under the stamp duty threshold
Links Lane, Pleasington, Blackburn
Price: £499,950
Sitting £50 below the stamp duty threshold is this four bed, two bathroom, detached house.
Without the stamp duty, you save £9,997 as a first time buyer and £14,997 if you are buying your next home.
This property can be found on Zoopla.
Spenbrook Road, Burnley
Price: £490,000
This Burnley property is £10,000 under the current stamp duty threshold. It is a five bed detached house with an integrated garage and utility room.
As a first time buyer, you save £9,500 and if you are buying your next property you save around £14,500.
You can find out more about this property on Zoopla.
Dene Bank Road, Oswaldtwistle, Blackburn
Price: £475,000
This beautiful four bed property is currently listed on Zoopla for £475,000. It is described as a “fantastic family home” and has a large wrap around garden.
Without stamp duty, first time buyers can save up to £8,750 and £13,750 if you are buying your next property.
Find out more about this property on Zoopla.
Hill Lane, Hurst Green, Clitheroe
Price: £475,000
On the property market for a farmhouse? This property has four bedrooms and is a Grade II listed building.
First time buyers save £8750 while those buying their next home can save £13,750.
Find this property on Zoopla.
Park Road, Helmshore, Rossendale
Price: £499,950
This farmhouse is £50 under the updated threshold and has three bedrooms and one bathroom. It has been newly renovated and is said to be ideal for families looking for a rural home.
Those already on the property ladder save £14,997, while first time buyers are looking at savings of £9,997.
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