Stamp Duty holiday – what does it mean?
Rishi Sunak has announced a rise in the tax threshold until March 2021, meaning that all properties bought in England and Northern Ireland will receive a temporary holiday on stamp duty on the first £500,000 with immediate effect. So what does this mean for you?
Stamp duty is tax paid by homeowners. The amount paid depends on where you are in the country and the price of your property.
The announcement of the stamp duty holiday means that for people completing a purchase on a main residence property costing up to £500,000 between 8th July 2020 and 31st March 2021, no stamp duty will be paid.
Properties of a higher value will only be taxed on the value above £500,000, meaning reduced tax rates for these buyers.
This is a big tax threshold increase from the £125,000 stamp duty threshold previously in effect in England and Northern Ireland.
Rishi Sunak has suggested that the average stamp duty bill will fall by £4,500, with 9 out of 10 people buying a home within the time limit paying no stamp duty at all.
These changes have been implemented in a bid to help buyers on the property ladder who may have taken a financial hit because of the coronavirus pandemic.