The Chancellor, Rishi Sunak, yesterday announced that he was putting in place a stamp duty holiday to start with immediate effect. The stamp duty holiday has been welcomed by those in the property sector as being a much needed boost to get the market moving again and has sparked a large increase in web traffic across all estate agency platforms in the last 24 hours.
The Chancellor announced that the standard rate stamp duty threshold, the point at which you start paying stamp duty, was being raised from £125,001 to £500,001. This change means that a first time buyer, or a person buying a home who is classed as replacing their main residence, will pay no stamp duty on a house up to £500,000. A buyer will then pay 5% duty on the next part of the purchase price, above £500,000, up to a maximum of £925,000. The scale then continues to rise and can be seen on the HMRC website for further clarity.
Higher rate buyers will too benefit from the reduced rate meaning that, whilst they will still pay something, there is a saving to be had for everyone buying across the board, save for companies, bringing some much needed good news to the UK at this difficult time.
Please note that the stamp duty holiday will end on the 31st March 2021 and thus from the 1st April 2021 the rates of stamp duty will revert back to the rates of pre yesterdays announcement.
If you’ve been thinking of moving home but have been put off by the Covid 19 crisis, or just generally have been putting things off, then now might just be the time to start browsing the market and making your next move. If now is the time to move, then please contact us to obtain a competitive quote and let us help you make that next move that little bit easier.
Jonathan Wall, Associate Solicitor and Head of New Build Property
Please contact our residential conveyancing team by calling 01642 356500/0191 2322574.