In an effort to boost the property market, the chancellor has announced a stamp duty holiday on the first £500,000 of all property sales in England and Northern Ireland from 8 July 2020 until 31 March 2021.
Who will benefit?
First time buyers and anyone else completing on a main residence will benefit from the new scheme. People buying a main residence with a value up to £500,000 will not pay any stamp duty, and more expensive properties will only be taxed on their value above that amount.
This means that everyone buying a main residence before 31 March 2021 will save up to £15,000 on stamp duty fees (see below for detailed summary).
How much stamp duty will I pay now?
If the property purchased is your main home, you won't pay any stamp duty on it at all if it costs £500,000 or less.
The next portion of the property's price (£500,001 to £925,000) will be taxed at 5%, and the £575,000 after that (£925,001 to £1.5 million) will be taxed at 10%.
The remaining amount (over £1.5 million) will be taxed at 12%. Click here to calculate how much tax you will be liable to pay.
What is the difference in stamp duty?
*Source: HM Revenue and Customs
The aim of the stamp duty holiday is to help kick start the property market again following the coronavirus. It has already been reported that there has been a significant increase in traffic on online property platforms and estate agents are confirming record sales.
The government predicts that the holiday will result in the average stamp duty bill falling by £4,500, with nearly 9 out of 10 people buying a main home this year paying no stamp duty at all.
You may have missed out on your trip abroad this year, so why not take advantage of the stamp duty holiday instead and help give the property market a boost. For more information about the properties we have available, please visit our website at www.pearcefinehomes.com