2HOW MUCH TAX WILL YOU HAVE TO PAY WHEN BUYING A PROPERTY IN THE UK?
As announced this afternoon by the Chancellor Rishi Sunak, there will now be a temporary holiday on stamp duty, to start with immediate effect and to run until 31 March 2021.
Stamp duty land tax will now be exempt on the first £500,000 of all property sales in England and Northern Ireland in a bid to kick-start the economy as part of the government’s Coronavirus recovery plan.
This means that the threshold for 'no stamp duty' therefore rises from £125,000 to £500,000.
Based on a property / land value of £ there will be £ Stamp Duty due.
| Band | Rate | Due |
|---|---|---|
| Up to £ 500,000 | 0% | 0% |
| Above £ 500,001 to £ 925,000 | 5% | 0% |
| Above £ 925,001 to £ 1,500,000 | 10% | 0% |
| Above £ 1,500,000 | 12% | 0% |
| TOTAL | 12% | 0% |
From 8 July 2020 to 31 March 2021 the special rules for buyers are replaced by the reduced rates set out above.
For buyers who are purchasing a second home or buy-to-let property, they will also benefit from the changes, although the 3% surcharge will still apply.
The Chancellor claims that the average stamp duty bill will now fall by £4,500, but could save buyers up to £15,000 off the overall cost of transactions in more expensive areas.
This is a welcome announcement which will no doubt give a boost to the industry and further strengthen the housing market.
SocialMedia