Stamp Duty Holiday Confirmed
Chancellor Rishi Sunak has confirmed that there will be a stamp duty holiday following the Coronavirus lockdown.
The threshold will now be raised from £125,000 to £500,000 and will last until March 2021.
The average stamp duty bill will now be cut by around £4,500. This also means that 9 out of 10 house buyers will not be paying stamp duty at all.
Home buyers would usually only pay zero stamp duty on the first £125,000 of the property value. They then pay two per cent of the value of the home up to £250,000 and five per cent on the next £675,000.
You must complete your purchase before 31st March 2021 to make use of this ‘holiday’.
First time buyers are already exempt from paying any stamp duty up to £300,000 outside London and £450,000 in London.
The hope is that this stamp duty cut will boost the property market.