No Better Time To Buy
The Chancellor, Rishi Sunak, has announced a reduction in Stamp duty. The tax on buying land or properties, is being temporarily cut in England for all property sales.
From now until 31 March 2021 it will only be charged on properties costing £500,000 or more.
Who pays stamp duty and how much?
In England stamp duty is paid on land or property sold for £125,000 or more.
However, first-time buyers pay no tax up to £300,000 and 5% on any portion between £300,000 and £500,000.
For people who have bought a home before, stamp duty rates are 2% on £125,001-£250,000, 5% on £250,001-£925,000, 10% on £925,001-£1.5m, and 12% on any value above £1.5m.
People buying second homes and Landlords purchasing a buy-to-let pay an extra 3% of stamp duty when they buy property in England.
What has changed?
The Chancellor has increased the lower stamp duty threshold to £500,000 for property sales in England.
So any property purchases below the new level will not need to pay stamp duty as long as the deal is completed before 31 March 2021.
People buying second homes and buy-to-let properties will also benefit, but will still have to to pay the 3% extra duty due on the entire price.