A home is the largest purchase that most people will ever make. When buying a residential property, you usually pay Stamp Duty Land Tax (SDLT) on increasing portions of the property price above £125,000. In the mini budget on 8th July 2020 the Chancellor announced an increase in the Stamp Duty threshold to £500,000, effective immediately until 31st March 2021, to assist the housing market in its recovery following the impact of the coronavirus.

What does that mean for you? 

If you are completing a property purchased anytime from now to 31st March 2021 you will not need to pay Stamp Duty on properties up to the value of £500,000. More expensive properties will only be taxed on their value above that amount. 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. The savings are still significant. 

The announced Stamp Duty holiday is unprecedented saving buyers thousands of pounds. The hope is to boost the flagging property market enabling quicker economic recovery. The Stamp duty holiday has provided an additional incentive to buyers and encourages buyers not to stall their impending purchase but to buy now. The temporary changes have been welcomed, however there is a concern there could be a slump in the housing market at the end of the stamp duty holiday. The changes are also not retrospective so any buyers that completed before 8 July cannot unfortunately take advantage of the savings.