08 Jul 2020
Chancellor Announces Changes to Stamp Duty Threshold
Temporary stamp duty holiday on the first £500,000 of all property sales in England and Northern Ireland announced.
Earlier today, chancellor Rishi Sunak announced an increase to the stamp duty threshold for England and Northern Ireland.
The temporary increase in the threshold comes into effect from today, 8 July, and will run until 31 March 2021. Set at £500,000, the new threshold applies to those purchasing their primary residence and represents a rise in the tax-free limit from £125,000 (£300,000 for first-time buyers).
This means that for those purchasing properties with a purchase price of £500,000 or less, there will be no requirement to pay stamp duty, provided the completion date takes place before 31 March 2021. For properties priced over £500,000, there will be no stamp duty requirement on the first £500,000, of the purchase, but any amount over this will be charged stamp duty at the standard rate.
Those buying second homes or buy-to-let properties will also benefit from the change, but will still be eligible for a 3% extra duty which is due on the entire purchase price.
Managing Director of Spitfire Bespoke Homes, Ben Leather, commented: “This is a welcome change which promises a saving of up to £15,000 for those looking to purchase within the next 9 months. For many households, the recent COVID-19 lockdown across England has highlighted that their existing home no longer meets their requirements, so today’s announcement from the chancellor will support them in their search to secure a property which is better suited to accommodate their lifestyle. This increased threshold, combined with the current low-interest rates on offer, means there’s no better time for purchasers to secure their ideal home.”