LIVERPOOL, England, July 15, 2020 /PRNewswire/ -- As of July 8th 2020, the Chancellor, Rishi Sunak, announced a higher threshold for stamp tax in the UK until March 31st 2021. There are several positive outcomes from this new announcement. Primarily this will affect those interested in purchasing property or investing in the care sector.
Across the UK, people buying property will pay Stamp Duty Land Tax. Also known as Land Transaction Tax in Wales, and Land and Buildings Transaction Tax in Scotland. Buying property is already a costly process and Stamp Duty made this even more so. The increase in the threshold from £125,000 to £500,000 means that potential buyers can save a substantial amount of money during this stressful economic climate, brought about by the COVID-19 pandemic.
When the announcement was made, Rightmove saw an 22% increase in website traffic within the first 30 minutes. 84% of searches made were for properties below the £500,000 threshold. The day of the announcement was in fact, Rightmove's busiest recorded day for site visits. These statistics shine a light on the future of the property market and forecasts positive outcomes.
With no Stamp Duty being imposed, first-time buyers will be able to step onto the property ladder with more ease; but it's not just first-time buyers who stand to gain. This tax holiday will encourage home owners to seize the opportunity to upsize or downsize their current home. It will boost the housing market that was beginning to experience a plateau and will even benefit landlords who plan to expand their portfolio of rentals as they are also exempt from any Stamp Duty.
Second homeowners and property investors also see some benefit from the tax holiday because even though they will have to pay 3% Stamp Duty on any further purchases, they will pay no further duty on the first £500,000 of the property's value.
Intercare have seen an increase in inquiries regarding investment opportunities as the ease on Stamp Duty has provided people with the perfect opportunity to invest their money rather than lose it through unavoidable tax payments.
Now, is the perfect time to invest money into the care sector, as it projected to see massive growth and high-yield returns in the coming years. The elderly population of the UK are in need of specialised care, now more than ever, and investing in an already well-established home is an educated and stable way to make a good return.
The care sector was already exempt from Stamp Duty and making an investment now with potential tax savings will earn even more in the future.
Intercare works with care homes across the UK. They specialise in ensuring businesses and organisations in the healthcare sector receive the maximum amount of fee income, efficiently and cost-effectively, while providing the very best and safest professional care.
If you are interested to know more about care home investments please contact Intercare at:
Info@intercare.co.uk, +44 (0)800-433-2273