Purchasers can beat the hike in Stamp Duty costs if quick
Moving home before the Stamp Duty rise on April 1 could save purchasers thousands
Bloor Homes is warning that the end of January 2025 is the latest point at which homeowners wishing to avoid additional Stamp Duty Land Tax hikes in the Spring should realistically reserve a brand-new home.
From April 1st 2025, the ‘nil rate’ for existing homeowners halves from £250,000 to £125,000. That means people who have a home to sell will start paying tax on any amount over £125,000. The total amount they will pay depends on the value of the new property they are purchasing –
- the first £125,000 is tax free
- between £125,001 and £250,000 are charged at 2%
- between £250,001 and £925,000 are charged at 5%
- between £925,001 and £1.5 million are charged at 10%
- amounts over 1.5 million are charged at 12%
The developer says there has been a lot of information for first time buyers around the change in the Stamp Duty threshold, but they are not the only ones being affected by the changes coming in next Spring; anyone moving home after April 1st will be affected by the change to the nil rate, whether they are first time buyers or selling a home to move.
This also means the window for saving money by paying less in Stamp Duty is even tighter for people who have a home to sell. But Bloor Homes says there is good news if people are looking to buy a newly built home: firstly, with a brand new home there is no forward chain which could speed up the process, and secondly, on selected plots there are incentives such as part exchange - which would mean no chain at all - or Assisted Move, which helps people market their home. Some developments also have financial support incentives such as Deposit Boost, which add additional savings designed to help people make their move.
Bloor Homes’ sales teams are welcoming visitors to discuss their options and make informed decisions about how they could beat the clock and move to a brand new, energy efficient home with no forward chain before the deadline.
Using the government’s Stamp Duty Tax Calculator, people can work out the savings they will make if they can move on or before March 31st.
More information about the new homes available to move into by the deadline is available by contacting specific developments. For a full listing of developments visit: www.bloorhomes.com