Partner & Head of Real Estate, Kiri Kkoshi, comments on the recent government announcement regarding stamp duty holiday.
In a move designed to revitalise the property market, the government has introduced a temporary Stamp Duty “holiday”.
The recent announcement by the Chancellor will be welcome news for many, and should provide a much needed boost to the housing market hit hard by the recent lock-down.
Under the new measures the Stamp Duty threshold has been raised to £500,000 for property sales in England and Northern Ireland until 31st March 2021.
This change will mean that buyers completing on a main residence costing up to £500,000 will not have to pay any Stamp Duty; and anyone purchasing a property costing more than £500,000 will save up to £15,000.
According to the Chancellor, this move will see the average Stamp Duty bill decrease by £4,500, with nearly 9 out of 10 people buying a main home paying no Stamp Duty at all.
Landlords and second home buyers will also be eligible for the tax cut. They will, however, still have to pay the extra 3% of Stamp Duty that they were charged under the previous rules.
Kiri Kkoshi, Head of Real Estate at Healys, says:
“This announcement is excellent news for the housing market. As the UK emerges from the Covid19 lockdown these measure will help to stimulate the property sector, providing much needed support for homebuyers and the industry as a whole.”
The new rules take place with immediate effect, and will apply to all house purchases completing between 8th July 2020 and 31st March 2021.
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