Stamp Duty payment holiday announcedJul 08, 2020
Category: Residential Property
The Chancellor of the Exchequer has today announced that he is introducing a Stamp Duty payment holiday. This will essentially mean that no stamp duty will be payable on property purchases up to and including £500,000 nationwide. The Stamp Duty payment holiday will last until 31st March 2021
The chancellor advised at 1pm today the changes will come into effect “immediately”.
First Time Buyers
Today’s announcement enhances the offer to first time buyers too. They were already exempt from paying Stamp Duty on properties up to the value of £300,000. The Chancellor has extended this to £500,000.
This is an effort to kick start the housing market and get people moving again. During the lockdown it was reported that there were half as many property sales as this time last year. House prices have fallen for the first time in 8 years.
The payment holiday will be good news for those already on the ladder looking to upsize or relocate. For some it could mean a saving of up to around £15,000.
As an example, someone buying a home for £350,000 would have had to pay £7,500 Stamp Duty.
From now until 31st March 2021, they would pay £0 on Stamp Duty.
Central Government has released further guidance this afternoon. This indicates that the threshold has also been raised for those people owning multiple properties. For more information about this, please give us a call on 01752 664444 or refer to the guidance document here: https://www.gov.uk/guidance/stamp-duty-land-tax-temporary-reduced-rates
Our current clients
We’ll be in touch with all of our current clients who are affected.