Chancellor Rishi Sunak announces stamp duty holiday on first £500,000
In a welcome bid to sustain the rebound in the housing market activiuty Chancellor Rishi Sunal announced today that with immediate effect that the stamp duty land tax threshold is to be increased from £125,000 to £500,000 and will last until 31st March 2021.
This means that 9 out of 10 transactions in England will no longer be subject to stamp duty meaning that some buyers could save up to £14,999 overnight.
What is Stamp Duty?
Stamp duty is a land tax paid by buyers when they purchase a home or a piece of land, normally calculated on a tiered basis on transactions over £125,000.
An example calculation on a purchase at £500,000 is shown below.
Currently just 16% of sales in England are currently exempt from stamp duty, falling under the £125,000 price bracket, but now an extra 73% of sales in England will be exempt from the basic level of tax meaning 89% of sales in England will make huge savings on the home move.
Landlords or investors looking to purchase an additional property will still be required to pay the extra 3% additional property tax.
If you are thinking of moving home and would like to see how this could impact your move, get in touch on 01283 537120 or book your valuation here