Chancellor Rishi Sunak today confirmed an immediate rise in the stamp duty threshold to £500,000, in a fresh bid to stimulate the housing market following the coronavirus lockdown.
Mr Sunak had been widely expected to offer buyers a stamp duty ‘holiday’ as part of his mini-budget announcement.
The Chancellor revealed the cut in stamp duty would be in place until March 31 2021, with all buyers exempt from paying stamp duty on the first £500,000 of the purchase price.
Previously, stamp duty applied to properties costing £125,000 or more for all buyers other than first-timers.
First-time buyers were already exempt from stamp duty on the first £300,000 of a property’s purchase pruce, but Mr Sunak’s announcement is a shot in the arm for those at the higher end of the market, who will now enjoy substantial savings.
Landlords, meanwhile, will only pay the additional 3% surcharge on buy-to-let properties or second homes costing up to £500,000, having previously paid the old residential rates and the surcharge on top.
That means a landlord purchasing a buy-to-let property for £300,000 would pay £9,000 in stamp duty rather than £14,000.
A buy-to-let property costing £500,000, meanwhile, would command £15,000 in stamp duty compared with £30,000 before the threshold was raised.
The stamp duty holiday will apply to property purchases in England and Northern Ireland only.
Thinking about buying? Calculate how much stamp duty you would pay: