Stamp Duty Holiday – What is it and how long will it last?
Stamp Duty Holiday – What is it and how long will it last?
On 8th July Rishi Sunak announced in the Chancellor’s mini budget a temporary holiday on stamp duty in England and Northern Ireland to try and boost the property market.
This means that until 31 March 2021, homebuyers won’t pay stamp duty on homes up to £500,000 creating big savings for homebuyers in tax.
The Treasury says nine out of 10 people getting on or moving up the property ladder (or downsizing) this year will pay no stamp duty as a result.
What is stamp duty?
Stamp duty is a tax paid to the government when purchasing property. The amount of tax depends on the price of the property and location in UK.
Previously the threshold where you would start paying stamp duty was £125,000, or £300,000 for first-time buyers (if buying a property worth less than £500,000)
Now if you’re buying a property under the new £500,000 threshold you pay nothing in stamp duty. If you are buying a property over this amount you will not pay anything on the first £500,000 (saving you £15,000), and then normal rates above that.
Work out your stamp duty liability using this CALCULATOR
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Does the stamp duty holiday apply to buy-to-let?
Landlords and second home buyers are also eligible for the tax cut but will still have to pay the extra 3% of stamp duty they were charged under the previous rules, but this will be on the whole purchase price.
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