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What the extension to the Temporary Relief Act 2020 means for you.

Responding to the COVID–19 pandemic, incentives were put in place for first time homebuyers: this included raising the “nil–rate” – or “tax free” band. In layman’s terms, this decreases the amount of tax payable when buying a house.

This relief period is set to end on the 30th June 2021, however buyers fear not! 

An extended relief period is to be given for homebuyers. From the 1st July until 30th September 2021, the raised “tax free” bands for first time buyers are as follows: 

Property Value

% Tax Paid

So much as does not exceed £250,000

0%

So much as exceeds £250,000 but does not exceed £925,000

5%

So much as exceeds £925,000 but does not exceed £1,500,000

10%

The remainder (if any)

12%

 

Source: Extension of the temporary increase to the Stamp Duty Land Tax nil rate band for residential properties – GOV.UK (www.gov.uk)

What does all this finance jargon mean for you as a homebuyer? Simply put, it decreases amount of the property’s value that is taxed when buying a house – meaning you will pay less for your home until the 30th September.

If you have any questions on how we can help you take advantage of this and get a mortgage for your property, be it your first or tenth home, contact us at Financial Foresight!

Source: SMK/FFNI 07/07/21

 

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