Stamp duty ‘holiday’: Rishi Sunak ‘draws up plan’ to raise threshold in autumn 2020 Budget | Personal Finance | Finance


The Chancellor of the Exchequer Rishi Sunak will reportedly reveal plans this week to increase the threshold at which point buyers start to pay Stamp Duty. Currently, this threshold is £125,000, however it could be lifted to as much as £500,000, The Times reports.

The temporary measure – which is expected to be implemented in the autumn Budget – is intended to stimulate the housing market and help rebuild the UK economy.

Mr Sunak will deliver a summer statement on Wednesday, July 8.

The Times reports the Chancellor will announce stamp duty plans on Wednesday, as well as a temporary VAT cut for pubs, restaurants and cafes.

The plans for a “stamp duty holiday” are intended to help first-time buyers to get on the housing ladder.

READ MORE: Changes to this controversial tax break ‘may be back on agenda’

Prime Minister Boris Johnson has said a number of times in the past that he wants to overhaul stamp duty, calling it a “huge problem”.

Currently, stamp duty is not payable on the first £125,000, with the rate being two percent up to £250,000.

Homebuyers will pay five percent on the value of the property up to £925,000.

From £925,001 to £1.5 million, the SDLT rate is 10 percent.


Then, the remaining amount – meaning any portion above £1.5million, has a SDLT rate of 12 percent.

There are higher rates for additional properties.

These buyers usually need to pay three percent on top of the normal SDLT rates if they’re buying a residential property which means a person will need to own more than one.

However, The Times reports that Mr Sunak is considering increasing the threshold to £500,000 for a temporary period.

Then, on any portion from £300,001 to £500,000, the rate is five percent.

However, if the price of the property is over £500,000, then the buyers follow the rules for people who have bought a home before.

A person is eligible if:

  • They, and anyone else they’re buying with, are first-time buyers
  • They complete their purchase on or after November 22, 2017.

Source link

Leave A Reply

Your email address will not be published.