In the Chancellor’s Summer Statement, Rishi Sunak announced a Stamp Duty Land Tax (SDLT) holiday to take effect from 8 July until 31 March 2021 in England and Northern Ireland in an attempt to boost the property market.
The changes mean that for people buying their main home (in England and NI) where the value is under £500,000, no stamp duty will be payable. Prior to this new measure, SDLT is payable on properties over £125,000 (or £300,000 for first time buyers) on a sliding scale.
This is a saving of £15,000 on a property in England and Wales costing £500,000.
For those purchasing a second home, or a buy to let property, savings will be also be made as the 3% higher rate of duty will benefit from the increase in the nil threshold of £500,000. As an example, stamp duty would be just £15,000 compared to £30,000 prior to the temporary reduction on a property with a purchase price of £500,000.