The chancellor Rishi Sunak has today announced a temporary holiday on stamp duty on the first £500,000 on all property sales in England and Northern Ireland. 

This payment holiday will be temporary until next March to boost the property market and help buyers struggling because of the recent pandemic. 

Prior to this temporary payment holiday, stamp duty was paid on land or property sales of £125,000 or more. However, first-time buyers didn’t have to pay any stamp duty on property purchases of up to £300,000 and 5% of any portion between £300,000 and £500,000.

For non-first-time buyers who bought a home before this temporary payment holiday was announced, rates are 2% on £125,001-£250,000, 5% on 250,001 - £925,000, 10% on £925,001-£1.5m, and 12% on any value above £1.5m.

Landlords pay an extra 3% of stamp duty when they purchase a buy-to-let property in England and Northern Ireland.

With the new stamp duty payment holiday, it means that any property purchased below £500,000 will not incur any stamp duty, as long as the deal is completed before March 31st 2021.

With the new payment holiday in place, a buyer who purchases a property worth £275,000 will save £3,750 on stamp duty.

This change is effective immediately from July 8th and will last until March 31st, 2021.

This is subject to further government policy changes.

If you are looking to purchase a property and want to know more about the Stamp Duty changes, call us on 0116 266 9977!

This is subject to further government policy changes.