• Stamp Duty holiday ends, long live tax on property buyers!
• Wednesday 30 June is the deadline for most European Union (EU) citizens to apply to live permanently in the UK as settled residents.
The Stamp Duty exemption for homebuyers paying tax on properties which cost £250,000 or less is coming to an end, much to my solicitor’s relief! He will need a real holiday!
Wales temporarily raised its threshold for land transaction tax (LTT) during the pandemic from £180,000 to £250,000, in line with other UK governments.
The exemption, originally to March 2021, was extended to 30 June.
Some homebuyers have saved thousands by completing sales within the deadline, but others are set to miss out for various reasons including legal or mortgage delays.
From 1 July, stamp duty will be charged above £250,000 at the following rates:
• £0-£250,000 = 0%
• £250,001-£925,000 = 5%
• £925,001-£1,500,000 = 10%
• £1,500,000+ = 12%
On 1 October 2021, rates are due to return to normal. That means the point you to start paying stamp duty will revert to £125,001:
• £0-£125,000 = 0%
• £125,001-£250,000 = 2%
• £250,001-£925,000 = 5%
• £925,000-£1,500,000 = 10%
• £1,500,000+ = 12%
Will there be a slump in the market?
In truth, nobody really knows when the property, or stock market, will peak, but we do know that bull runs usually last 10-12 years and we have already passed that deadline. Governments around the world printing trillions of dollars have prevented a slump and recession, so far. An estate agent friend of mine, who has just had her best quarter ever, said she is concerned that people who wanted to buy this year have done so already.
EU Settlement Scheme Deadline
Anyone who is not registered loses their legal right to live in the UK.
The EUSS was launched in March 2019 to register EU citizens as settled residents in the UK.
This is a follow-on from Brexit, which ended freedom of movement and the right of people from the EU to come to the UK - and for UK citizens to go the other way.
More details - [ Ссылка ]
By the end of May 2021, 5.6 million people had applied for the scheme.
How will this affect UK residents?
A shortage of skilled trade workers has developed as EU migrants leave the UK and demand for home improvements rises.
The hospitality sector is also experiencing staff shortages.
The laws of supply and demand dictate that when there is a shortage, prices rise. We will all be paying more for trades people, and the price of materials has also shot up.
It has become almost impossible to find handymen, plumbers, builders, electricians and other workers since the lockdown when thousands of EU workers handed back the keys to their landlords and flew home. With so many people moving, everyone is busy, which is exactly what the government wanted to achieve with the stimulus.
Would you like to get into property, but have no money or don’t know how?
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