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

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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.

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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.





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