Chancellor Rishi Sunak has today, Wednesday 8th July 2020, made a very welcome announcement for the Property Industry, raising the threshold for which Stamp Duty Land Tax is paid from £125,000 to £500,000 until 31st March 2021.
This means that if you are buying a house under £500,000 you will not pay any Stamp Duty on completion for the next 9 months unless you are buying the property as an investment. The news will give a great boost to the Property Industry, which despite seeing a surge in activity due to the ‘log-jam’ caused by the Lockdown, would be expecting a downturn towards the end of the Summer – the action taken by the Government will hopefully boost activity over those months.
The Table below shows the Stamp Duty Land Tax payable based on whether you are buying a home to live in or as an investment:
|Cost of House||Home to Live In||Investment Property|
|£0 to £500,000||0%||3%|
|£500,001 to £925,000||5%||8%|
|£925,001 to £1,500,000||10%||13%|
As ever, Folkes Worton will be monitoring all aspects of the Government’s support during the crisis, so please do not hesitate to contact us on 01384 376964 to see if we can help you.
Folkes Worton – Accounting for the Future