Homebuyers will be exempt from paying stamp duty on homes up to £500,000.
The stamp duty ‘holiday’, which will run until 31st March 2021, was announced by Chancellor of the Exchequer Rishi Sunak in his summer economic update on Wednesday.
As part of new ecomonic measures, Mr Sunak said the stamp duty holiday would take place with immediate effect, as the government seeks to revive the housing market following the heavy impact of the Covid-19 epidemic.
Up until now stamp duty has been paid on land or property sold for £125,000 or more in England and Northern Ireland. There are different rates and systems in Scotland and Wales.
In his speech Mr Sunak said that, on average, people buying a home would save £4,500 due to the raising of the threshold.
- Buyers usually pay their stamp duty based on the price on the day the sale is completed. That ‘bill’ has to be paid to HM Revenue and Customs within 14 days.