THE CHANCELLOR Rishi Sunak has today announced a holiday on stamp duty on the first £500,000 of all property sales in England and Northern Ireland.
The measure – which will start immediately and run up until March 31 2021 – was announced by Rishi Sunak during his mini-Budget announcement today (July 8) in a bid to stimulate the housing market.
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Mr Sunak unveiled the plan as part of his economic update in the House of Commons as the Chancellor vowed to help the country get back on its feet after the three-month shut down.
As The Sun revealed earlier this week, stamp duty is being cut in a bid to get the housing market moving.
Rishi Sunak said: “I have decided today to cut stamp duty.
“Today, I am increasing the threshold to half a million pounds. This will be a temporary cut running until 31st March 2021.
“And, as is always the case, these changes to stamp duty will take effect immediately. The average stamp duty bill will fall by £4,500.
“And nearly nine out of ten people buying a main home this year, will pay no stamp duty at all.”
The new move mirrors the popular measure introduced by ex-chancellor Philip Hammond in 2017 when he removed stamp duty up to £30,000 for first-time buyers buying properties worth up to £500,000.
The following year he announced that first-time shared ownership buyers can claim relief if their house was bought after November 22, 2017 for no more than £500,000.
Stamp duty land tax (SDLT) is a lump sum payment anyone buying a property or land over a certain price has to pay.
All house buyers in England and Northern Ireland must pay stamp duty on properties over £125,000 – although there are some exceptions.
For example, first-time buyers in England or Northern Ireland pay no stamp duty on properties worth up to £300,000.
The rate a buyer has to fork out varies depending on the price and type of property.
Rates are different depending on whether it is residential, a second home or buy-to-let.
Homebuyers pay 2 per cent of the value of the home between £125,001 and £250,000, and 5 per cent on the next £675,000.
Yes, the government has previously introduced a stamp duty holiday for Brits on two occasions.
In December 1991, Conservative chancellor Norman Lamont announced that the threshold for stamp duty would be raised from £30,000 to £250,000 for eight months.
The move was seen as a way to counter a slump in the housing market during the recession, and saw the number of home sales double, Homes and Property reports.
And at the height of the financial crisis in 2008, the former Labour chancellor Alistair Darling suspended stamp duty for a year on properties costing less than £175,000.
The move was welcomed by homeowners amid the significant economic downturn.