Chancellor Rishi Sunak announced on the 8th July that there will be a Stamp Duty Land Tax (SDLT) holiday which will run until 31st March 2021. This aims to support the housing market through the coronavirus pandemic.
“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 affect immediately.The average stamp duty bill will fall by £4,500. And nearly nine out of ten people buying a main home this year will pay no stamp duty at all.
This move will help to keep the nation and wider economy moving because keeping the current momentum going will help prevent destabilising falls in property prices as unemployment grows and enable a quicker economic recovery.”
What is Stamp Duty?
Stamp Duty Land Tax (SDLT) is a tax on properties bought in England and Northern Ireland. The rate of stamp duty to be paid is dependent on where in the UK the property is bought, the price of the property and the reason for the purchase.
How much stamp duty will I pay?
From 8th July 2020, if your property costs more than £500,000 hen you will have to pay SDLT, and if you are a first-time buyer you will not have to pay any stamp duty on a property up to £500,000.