Two Deadlines End 30 June - How Will They Affect You?

Two Deadlines End 30 June - How Will They Affect You?

·        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%

You can use the government's Stamp Duty Land Tax (SDLT) calculator to find out how much you would pay.

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

The take-up of the European Union Settlement Scheme (EUSS) has been huge - but there are serious concerns that thousands of people have still not sought to register. Anyone who is not registered loses their legal right to live in the UK.

What is the EU Settlement Scheme?

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 - https://how2cometotheuk.blogspot.com/2021/06/eu-settlement-deadline-30-june-2021-how.html

By the end of May 2021, 5.6 million people had applied for the scheme - far more than expected (it was estimated in March 2019 that there were 3.7m EU nationals in the UK).

How will this affect UK residents?

The BBC reports that a shortage of skilled trade workers has developed as European Union migrants leave the UK and demand for home improvements rises, according to the founder of Homeserve.

Chief executive Richard Harpin said the shortages were "pretty bad" across the country, not just in construction but in other trades too. He wants the government to put more trades on its jobs shortage list.

The hospitality sector is also experiencing staff shortages, so you might have to wait a little longer for your latte.

In the long run, importing cheap labour does not help the economy and we should be investing in more training to upskill the resident workforce, especially if they are unemployed and drawing benefits.

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? Book a free consulation with me now.

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