Rishi Sunak has announced in his summer statement that he intends to ‘catalyse the housing market and boost confidence’ in a bid to revive the UK’s Covid-hit economy. The Finance Minister has stated that residential buyers will pay no tax on their house purchases under £500,000 in England & Northern Ireland. The stamp duty holiday will be in effect from 8th July 2020 to 31st March 2021. This replaces the £125,000 previous threshold as standard; meaning that, on average buyers could save approximately £4,500 in Stamp Duty charges (savings could be as much as £15,000 in some areas of the UK).
This is exciting news for buyers that have been waiting in the wings; Rightmove saw a 22% increase in traffic to their site only 30 minutes after the Ministers announcement on Wednesday.
The freeze on Stamp Duty came earlier than anticipated, after plans of the incentive holiday were leaked last week. In turn this has forced the Government to fast track the scheme amid fears that buyers ‘would wait’, sending the economy into a deeper freeze.
So, how will you benefit from these changes?
If you are purchasing a main residential home in the England or Northern Ireland, you will be exempt from Stamp Duty up to £500,000 of the property’s value. Should you be looking to purchase a home with a value of more than £500,000 then you can expect to pay 5% of the amount over the £500,000 threshold. (£500,001 - £925,000 at 5%).
From 8th July to 31st March, If you are purchasing an additional property, you’ll pay 3% Stamp Duty on the first £500,000, then 8% on the remaining portion (£500,001 - £925,000 at 8%).
See how Evolve can help you with your new purchase by calling the number below. We have a team of expert Advisors on hand to discuss your requirements and guide you through the home buying process.