Stamp duty holiday: How will it work?

The #Chancellor #RishiSunak has announced today a temporary #holidayonstampduty on the first £500,000 of all property sales in England and Northern Ireland to boost the property market and help buyers struggling because of the #coronavirus pandemic.

What is a #stampduty?

The Stamp Duty is a tax paid by Buyers and the amount depends on price of the property and if you're a first-time buyer or not.

How much is the Stamp Duty?

In England, the Stamp Duty is paid on properties and lands sold for £ 125,000 or more.

first-time buyers pay no tax up to £300,000 and 5% on any portion between £300,000 and £500,000.

For people who have bought a home before, stamp duty rates are 2% on £125,001-£250,000, 5% on £250,001-£925,000, 10% on £925,001-£1.5m, and 12% on any value above £1.5m.

An Investor pays an extra 3% of stamp duty when the purchase is related to a buy-to-let property.

What will change from the 8th of July 2020?

The government has increased the lower stamp duty threshold to £500,000, so any property purchases below the new level will not need to pay #stampduty as long as the deal is completed before 31 March 2021.

Buy-to-let properties will also benefit, but will still have to pay the 3% extra duty due on the entire price.

Chancellor Rishi Sunak said: "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."

The holiday applies from 8 July, which means anyone completing a property purchase before that date will have to pay the full normal stamp duty.

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