Stamp duty threshold lifted
In a widely anticipated move the Chancellor has temporarily raised the threshold that stamp duty tax is paid on property transactions in England and Northern Ireland to £500,000.
The move, which comes into immediate effect, is designed to boost the property market and help buyers struggling because of the Coronavirus pandemic.
Rishi Sunak said: "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."
What is stamp duty?
Stamp duty is a tax paid when you buy a property. In England and Northern Ireland, buyers pay Stamp Duty Land Tax (SDLT).
Do I have to pay stamp duty and, if so, how much?
The amount payable depends on the price of the property and whether or not you are a first-time buyer. Today's changes to stamp duty apply to buyers in England and Northern Ireland.
The government has increased the lower stamp duty threshold from £125,000 to £500,000 for property sales in England and Northern Ireland. That means any property purchases below this amount will not need to pay stamp duty, providing the deal is completed before 31 March 2021.
People buying second homes and buy-to-let properties will also benefit, although they will still have to to pay 3% extra duty due on the entire price.
When does the change in stamp duty take effect?
The change is effective immediately (from Wednesday 8 July 2020) and will last until 31 March 2021.
Can I still benefit if I've already completed a purchase?
The new threshold takes effect on 8 July 2020. This means anyone completing a property purchase before that date will still have to pay stamp duty based on the old thresholds.
The contents of this article are intended for general information purposes only and shall not be deemed to be, or constitute legal advice. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article.