The Chancellor of the Exchequer has announced a temporary holiday on the first £500,000 of stamp duty. This comes into effect from now until 31st March 2021. It has been raised to help buyers struggling because of the coronavirus crisis.
Stamp duty is a tax paid by people buying properties and it varies slightly across the UK. The amount of stamp duty paid depends on where you are in the UK and the price of the property. These changes will only apply to buyers in England and Northern Ireland.
The Government has increased the stamp duty threshold to £500,000 for property sales in England and Northern Ireland. Main residences costing up to this amount will not pay any stamp duty and more expensive properties will only be taxed on their value above that amount.
This will save buyers as much as £15,000. Landlords and second home buyers are also eligible for the tax cut but will still have to pay the extra 3% of stamp duty they were charged under the previous rules.