Today, Wednesday 8th July, the Chancellor announced that property purchases in England and Northern Ireland will benefit from a Stamp Duty holiday for purchases up to £500,000 with immediate effect until 31st March 2021.
Until today Stamp Duty was charged on property purchases of £125,000 or more unless you were a first-time buyer in which case Stamp Duty was only payable on purchases of £300,000 or more. From today all purchases of property as a main home (so not company purchases or buy to let purchases) up to £500,000 will be free of Stamp Duty.
In his speech the Chancellor explained that we need people to feel confident, confident to buy, sell, renovate, move and improve to drive growth and create jobs. So to catalyse the housing market and boost confidence the Chancellor has cut stamp duty by raising the stamp duty threshold to £500,000.
The chancellor advised that the average stamp duty bill will fall by £4,500 and nearly 9 out of 10 people buying a main home this year will pay no stamp duty at all.
We are awaiting formal written guidance from HMRC and will update this blog as soon as it is received.