Get a wriggle on with your divorce settlement to benefit from stamp duty holiday
Divorcing couples in England are encouraged to agree their financial settlements promptly to take advantage of Rishi Sunak’s stamp duty holiday for house buyers.
‘Divorce can often require the purchase of a property for one partner, or even selling the family home to fund the purchase of two smaller homes,’ says Katie Coles a solicitor in the family law team at Miles & Partners. ‘The Chancellor’s stamp duty incentive could benefit a couple substantially if they are able to take advantage of it and complete their purchase in time.’
Stamp duty holiday until March 2021
Until the 31 March 2021, there is a cut in temporary stamp duty land tax (SDLT) for residential property, as the nil rate band in England and Northern Ireland was raised from £125,000 to £500,000.
The new rule will also replace the rules for first-time buyers during this period.
If a property is being purchased as your main home, you will not pay any stamp duty on it at all if it costs less than £500,000. This means a couple would save £1,500 on a home costing £200,000 and £5,000 on a home costing £300,000. For a property costing £500,000 or more, the saving will be worth £15,000.
These changes were announced as part of a plan to kick-start the economy and avoid the much-predicted recession caused by the coronavirus pandemic.
The move will put more money in the pockets of house buyers, and it is hoped that this will trickle down into the economy as people spend on decorations, new furniture and construction companies see property change hands quicker.
This article is for general information only and does not constitute legal or professional advice. Please note that the law may have changed since this article was published.
The contents of this article are for the purposes of general awareness only. They do not purport to constitute legal or professional advice. The law may have changed since this article was published. Readers should not act on the basis of the information included and should take appropriate professional advice upon their own particular circumstances.