Homebuyers are to benefit from a Stamp Duty Land Tax break on property worth up to £500,000, offering on average a saving of £4,500.
The Chancellor Rishi Sunak announced the temporary holiday in his mini budget on 8th July 2020, in a bid to boost the property market and help buyers who have been hit financially by the coronavirus lockdown.
Anyone completing on a main residence in England and Northern Ireland costing up to £500,000 between 8th July 2020 and 31st March 2021 will not be required to pay Stamp Duty Land Tax. Those purchasing more expensive properties will only be taxed on the value above that amount.
Mr Sunak said nearly nine out of 10 people getting on or moving up the property ladder or downsizing this year will pay no Stamp Duty Land Tax.
People buying second homes and buy-to-let properties will also benefit but will have to pay the extra 3% of Stamp Duty Land Tax they were charged under the previous rules.
Before the announcement, homebuyers did not have to pay any Stamp Duty Land Tax on the first £125,000 of the purchase price of their home they then paid 2% on the value between £125,001 and £250,000, and 5% on the next £675,000.
The exception to this was first-time buyers purchasing homes worth up to £500,000, who do not pay Stamp Duty Land Tax on the purchase price up to £300,000 and then pay 5% on the portion from £300,001 to £500,000.
To find out more about this or any other property matter and to see how we can help, you please contact Zoë Baxter or Jon Coles, who together head our Residential Property team.
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