UK Stamp Duty Holiday means property investors in Hong Kong, Singapore, UAE and rest of the world, can save up to £15,000 if they complete their transaction before March 2021. API Global are UK property experts that specialise in securing investment property assets for local and international investors. With a focus on the UK, the international team strives to deliver an end-to-end solution to their investors. For more information on API Global visit https://www.apiglobal.co.uk
Chancellor Rishi Sunak has announced plans for a stamp duty holiday for anyone buying a new home up to the value of £500,000. This is a temporary policy that now is in effect until March 31, 2021. According to API Global, there are a number of important takeaways for new property investors when trying to understand the impact of the temporary stamp duty holiday now in operation. What this means is that around 9 out of 10 new house buyers will pay zero stamp duty. Up until the announcement was made there was no stamp duty on any housing transactions below £125,000. For those purchasing property over the half a million mark, it means that the average stamp duty bill will reduce by £4,500 and means that nearly 9 out of 10 people buying a main home until the cut off date will pay no stamp duty at all. Someone buying a £500,000 property would save the maximum £15,000 in stamp duty fees. Visit https://www.apiglobal.co.uk to learn more about investing in the UK property market.
Also known as Stamp Duty Land Tax, Stamp Duty is an amount of money paid by those buying property or land over set price. Stamp Duty is paid as a lump sum and until the announcement was made it applied to anyone buying a second home over the value of £125,000 or anyone buying their first home valued over £300,000 in England and Northern Ireland. The actual amount of Stamp Duty paid depends on the type of property, if it is leasehold or freehold, and if the property is being purchased as part of a trust or company. Stamp Duty is usually calculated by solicitors or housing agents on behalf of the home buyer and the figure is added to their fees. Those buying properties costing over £500,000 will still need to pay stamp duty, but they will pay £15,000 less than before the holiday period. So for a stamp duty bill for a £1m home, the owner will now have their stamp duty reduced from £43,750 down to £28,750, saving them around a third in fees.
With the average UK property costing around £237,616, a buyer would have to pay around £2,250 stamp duty on top of their purchase. The Stamp Duty holiday means that new house buyers could save up to the maximum of £15,000 over the coming nine months until the temporary holiday period expires on 31st March 2021.The policy was brought in to help boost the housing market and the economy. Lifting the stamp duty will encourage more home buying transactions, meaning house buyers can better afford to move to areas with better employment markets, and the extra spending on associated moving costs such as removals, new furniture and decorating for new homes etc. will help boost the economy further.
For overseas property investors, it is important they work with highly knowledgeable and experienced property specialists, such as API Global, to understand the full impact of the savings on them. Learn more about API Global and by going to https://www.apiglobal.co.uk
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