Stamp Duty Holiday – What you need to know
The Chancellor announced that from 8 July the stamp duty threshold will temporarily be raised from £125,000 to £500,000, a step taken to boost the property market in response to the COVID-19 pandemic.
This means if you are buying a property priced at £500,000 or below you will pay no stamp duty. These changes will start with immediate effect until 31 March 2021, so if you are already part-way through buying a property you will also benefit. This measure is described as a way to allow people to feel confident to buy, to sell, to renovate, and to improve their homes and is expected to boost the property market.
What does this mean?
The stamp duty holiday means you could potentially save thousands of pounds, which can be used towards your deposit or spend on renovating your property once you’ve moved in. For first-time buyers, the threshold was already set at £300,000, instead of the usual £125,000 paid by those moving to their second or subsequent home, meaning this group are less likely to be impacted by the stamp duty holiday, unless buying a first home over £300,000.
Those purchasing a home just below the threshold at £500,000 would save a total of £15,000, whereas a house priced at £200,000, would save £1,500. This is positive news for anyone on the fence about moving home.
If you are considering selling your property following the announcement contact us on 01422 430043.