Stamp duty holiday bid to revive housing market
Struggling home buyers to get a break with raising of tax threshold
The Chancellor Rishi Sunak has announced a temporary cut in stamp duty in today’s summer statement as part of a package of measures to boost the economy in the wake of the coronavirus crisis.
The move – which raises the stamp duty threshold to xxx – will begin in <insert month> and last up to six months. It’s aimed at getting the housing market moving again following the COVID-19 slowdown and will only apply to buyers in England and Northern Ireland.
Mark Gordon, director of money, comparethemarket.com comments:
Today’s confirmation that this measure is effective immediately, and will give the market a much-needed boost in the summer months, typically the time of year when we see some of the highest completion activity take place.”
Currently, stamp duty is paid on property values over £125,000 except in the case of first-time buyers, where the threshold is £300,000.
It’s charged at:
• 2% on the portion from £125,001-£250,000
• 5% on the portion from £250,001-£925,000
• 10% on the portion from £925,001-£1.5 million
• 12% on the portion above £1.5 million
For example, if you buy a house for £275,000 you’ll pay:
• 0% on the first £125,000
• 2% on the next £125,000
• 5% on the final £25,000
So the total Stamp Duty will be £3,750.