The Key Details
The stamp duty threshold, the level at which home buyers start paying the tax, has been raised from £125,000 to £500,000 for a period of just over eight months.
On average this will reduce the stamp duty bill by £4,500 – with nearly nine in 10 homebuyers paying no stamp duty at all.
Effective from today, and running until 31 March 2021!!
This new tax ‘holiday’ will be music to all home buyers and sellers, with the buyers now exempt from paying tax on property purchases up to £500,000 and vendors, feeling more confident of securing a sale.
What is Stamp Duty?
Stamp duty is a tax paid by people buying properties, although it varies slightly across the UK.
In England and Northern Ireland buyers pay Stamp Duty Land Tax.
In Scotland it is Land and Buildings Transaction Tax, while in Wales buyers pay Land Transaction Tax.
The amount handed to the government depends on where you are in the UK, the price of the property and whether you're a first-time buyer.
The expected changes to stamp duty will only apply to buyers in England and Northern Ireland.
What if I have exchanged but not yet completed?
Stamp Duty is calculated on the date of completion, so you should benefit from the new ‘holiday’ exemptions.