The chancellor’s recent announcement of the ‘Stamp Duty Holiday’ outlines changes that will remain in effect until March 2021.
In an attempt to stimulate the housing market, Rishi Sunak has temporarily increased the stamp duty threshold to £500,000 for property sales in England and Northern Ireland.
Essentially, buyers who are purchasing a main residence which has a value of u to £500,000 will not be required to pay stamp duty. Properties valued above the threshold will only incur the stamp duty tax on the value above £500,000.
It is estimated that the average stamp duty cost on a residence will decrease by £4,500 and it is also thought that around nine out of ten people who are purchasing a main residence, will be exempt from paying stamp duty.
For properties of a value in excess of £500,000 and less than £925,000, the stamp duty will stand at 5% and between £925,001 to £1.5 million will be taxed at 10%. Properties above £1.5 million will have stamp duty imposed at 12%.