On Wednesday 8th July the Chancellor Rishi Sunak announced various measures to help protect jobs, pledging up to £30bn to avoid mass unemployment and kick-start the economy's recovery.
In a bid to revive the UK's property market, the Chancellor announced an emergency Stamp Duty Land Tax (SDLT) holiday in England and Northern Ireland.
Before the announcement, there was no stamp duty on transactions below £125,000 (or £300,000 for first time buyers). The threshold at which SDLT will be payable has increased to £500,000 with immediate effect until 31 March 2021 for people buying a main home. Rishi Sunak said the stamp duty holiday would save jobs in the construction sector and encourage homeowners to invest in their homes. In addition, there is an element of "relief" for those buying investment properties.
The increased tax threshold has been widely welcomed by home buyers and the housing development industry after a challenging and stagnant few months. The emergency measure will save the average homeowner over £2,000. The maximum amount a buyer could save would be if they bought a home worth £500,000, saving £15,000 in SDLT.
Rosemary Farman, Partner and Head of Residential Property at Clapham & Collinge Solicitors said "This is really welcome news in the short term and, hopefully, it will kick-start the economy and those parts of the housing market that need some help. It will be interesting to see what will happen after the "holiday" is over."
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*This article is provided for general information purposes only and does not constitute legal advice or other professional advice.