The most eye-catching development in Rishi Sunak’s recent economic update is the drastic change in Stamp Duty Land Tax (SDLT). Properties worth up to £500,000 will be taxed at 0%, meaning that almost nine out of ten transactions will be tax free.
The aim of this move is to stimulate the housing market and to encourage new purchases. It is also notable that the relief applies to both first time buyers as well as those looking to move home. However, potential buyers will have to act fast: the extension of the zero rate only lasts from 8 July 2020 to 31 March 2021.
For those properties worth over the half million threshold, SDLT at 5% will be payable on the amount between £500,000 and £925,000, 10% on the next £575,000 and 12% on all amount in excess of £1.5million.
Furthermore, the higher rates for additional properties will still apply, meaning that those thinking in investing in buy to let might want to think twice.
Audley Chaucer is able to help with all of your conveyancing needs: contact one of our property team for further information.