BREAKING NEWS! Chancellor unveils Stamp Duty holiday
Chancellor Rishi Sunak has announced a stamp duty holiday which will run until 31 March 2021 in a bid to boost the housing market which has taken a hit due to the coronavirus pandemic.
Although the measure is temporary, it could have a lasting impact on people who are looking to buy homes at the lower end of the market.
What is stamp duty?
Stamp duty land tax (SDLT) is a lump sum payment those buying a property or piece of land over a certain price have to pay.
Prior to Wednesday, all house-buyers in England and Northern Ireland had to pay stamp duty on properties over £125,000, or if you were a first-time home buyer you did not need to pay stamp duty unless the property you were buying was more than £300,000.
The rate a buyer has to pay varies depending on the price and type of property - usually you would expect to pay more stamp duty if the property is worth more.
Landlords pay an extra 3% of stamp duty when they purchase a buy-to-let property.
What has Chancellor Rishi Sunak announced on stamp duty?
The cost of stamp duty on homes up to £500,000 has been suspended, potentially saving future house buyers tens of thousands of pounds.
Mr Sunak announced he has decided to cut stamp duty, telling the Commons: “Right now, there is no stamp duty on transactions below £125,000.
“Today, I am increasing the threshold to £500,000. This will be a temporary cut running until March 31 2021 – and, as is always the case, these changes to stamp duty will take effect immediately.
“The average stamp duty bill will fall by £4,500. And nearly nine out of 10 people buying a main home this year, will pay no stamp duty at all.”
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more details can also be found here on the official government website.