Some good news for the property market, as Chancellor Rishi Sunak announced a raft of measures worth up to £30 billion as part of his plan to rescue the economy amid the Coronavirus pandemic.  A Stamp Duty ‘holiday’ has been introduced, in a bid to boost the housing market and kickstart the economy.

What is Stamp Duty Land Tax?

Stamp Duty Land Tax is a tax payable on the purchase of land or property. The tax due is calculated on a cumulative basis, based on the value of the land or property.

What’s changed?

The threshold for paying Stamp Duty Land Tax has risen from £125,000.00 to £500,000.00.

First time buyers, and those who do not own an additional property, will not have to pay Stamp Duty on residential properties valued at £500,000.00 or less. A property valued at over £500,000.00 will be liable for Stamp Duty at a rate of 5%.

Furthermore, those who do own additional properties and are not replacing their main home will now only have to pay Stamp Duty at a rate of 3% up to an extended £500,000.00.

When do the changes come into effect?

These temporary measures are immediate and will run from 8th July 2020 to 31st March 2021. Although temporary, it is hoped that these changes will have a lasting impact on the housing market.

With wide variations in house prices, the average savings that home buyers can typically expect to make from these changes, will range from hundreds of pounds to as much as £15,000.

If you have any queries or would like to discuss the Stamp Duty changes and how they could affect you, then please give our property team a call.