Chancellor Rishi Sunak has announced a stamp duty holiday with immediate effect for anyone buying a new home up to £500,000.
The policy has come into effect today and will last until 31 March 2021.
Making the announcement, he said: “I have decided today to cut stamp duty. Right now, there is no stamp duty on transactions below £125,000. Today, I am increasing the threshold to half a million pounds.
“This will be a temporary cut running until 31st March 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.”
Stamp duty is a tax paid by those purchasing a house over a certain price. Until today, it applied to those buying second homes over £125,000 or first homes over £300,000 in England.
To purchase The Felton, pictured above, at £395,000 the stamp duty yesterday (7 July 2020) would have been £9,750 for a buyer who was moving home or £4750 for a first-time buyer.
Following the chancellor’s announcement today (8 July 2020), the cost of stamp duty for both buyers would be zero.