- July 8, 2020
- Posted by: Paul Macduff
- Category: News
Homebuyers will not pay stamp duty on the first £500,000 of a property’s purchase price, in a temporary measure announced by the Chancellor today.
At the moment, the threshold where you start paying stamp duty in England and Northern Ireland is £125,000, or £300,000 for first-time buyers (if buying a property worth less than £500,000).
Anyone completing on a main residence costing up to £500,000 between 8 July and 31 March will not pay any stamp duty, and more expensive properties will only be taxed on their value above that amount.
The Treasury says nine out of 10 people getting on or moving up the property ladder (or downsizing) this year will pay no stamp duty as a result.
In Scotland and Wales, it works differently – you’ll pay land and buildings transaction tax in Scotland and land transaction tax in Wales. Those buying properties in Scotland and Wales aren’t included in today’s announcement.
What if I’ve exchanged but not completed?
The requirement to pay stamp duty is triggered when you complete the purchase of the property. So if you’ve exchanged prior to 8 July but not completed, you’ll benefit from the increased thresholds.
This can help increase your deposit or make buying a new home more attractive – please do not hesitate to call us on 01603 864 760 to discuss your borrowing potential options further.