Stamp Duty Cut Confirmed!
With the news announced today from Rishi Sunak that Stamp Duty charges have been cut and the threshold has been increased to £500k find out what this means for you and for the property market.
It has been announced today that Stamp Duty charges will be reduced saving buyers thousands. These measures have been put into place to boost the housing market and economic recovery. The government has also announced £2bn of Green Home Grants in the form of vouchers to pay for at least two-thirds of green improvements such as loft, wall and floor insulation.
Stamp Duty- What has changed?
The Chancellor Rishi Sunak has today announced that the lower threshold for stamp duty has been increased from £125,000 to £500,000 in England & Northern Ireland.
This is in effect until 31st March 2021, this means if you are purchasing your main home under £500k before this date you will not pay anything.
The new rates are as follows:
Up to £500,000 Zero
The next £425,000 (the portion from £500,001 to £925,000) 5%
The next £575,000 (the portion from £925,001 to £1.5 million)10%
The remaining amount (the portion above £1.5 million) 12%
The scheme will save home movers thousands and is set to cause an uplift in the property market.
People buying second properties or buy to let landlords can also benefit, the 3% higher rate still applies but on top of the new standard rates.
When will this come into force?
Now!! The new changes come into effect from today, 8/7/20, and run until March next year.
How will this affect the property market?
The stamp duty cut will not only save thousands for those currently in the process of moving but will encourage new buyers and sellers into the market to take advtange of the tax cut.
It is intended to boost the market following stagnant months during the lockdown. Rishi Sunak said 'The average stamp duty bill will fall by £4500 and nearly 9 out of 10 people buying a main home this year will pay no stamp duty at all.'
We have already had significant numbers of buyers and sellers welcoming the news and our phone lines have already been busy with home movers benefiting from the tax cut. Those already on the look for their next home have been able to increase their offers on properties they are negotiating on, increase their deposits for mortgage purposes or consider homes requiring renovation with the spare funds. These are just a few ways the saved cash is already going to use.
For more information please see the following link to government advice.