Our Chancellor, Rishi Sunak has said stamp duty will be abolished for homebuyers up to £500,000 in his Economic Announcement this afternoon.
This is BIG news and could save a homebuyer up to £15,000. Yes, that is right up to £15,000!
The chancellor has advised that the temporary changes will take affect from straight away, the temporary Stamp Duty changes will continue until 31 March 2021.
The changes taking place will mean that stamp duty rates only apply to the part of the property price that falls within each band. The calculation for the new stamp duty will be as follows:
- 0% paid for the first £500,000
- Then 5% up to £925,000
- Then 10% up to £1.5m
- And 12% on anything above that
This is great news for those purchasing now and in the near future. This will also be welcomed by many sellers too and will clearly encourage people to move.
Here are few examples of the potential savings that can be made:
| Purchase Price | Stamp Duty Saving |
| £200,000 | £1,500 |
| £300,000 | £5,000 |
| £400,000 | £10,000 |
| £500,000 | £15,000 |
| Above £500,000 | £15,000 |
It is unclear at this stage whether this is a stamp duty holiday for buy to let investors.
Changes are to come into effect as of now.
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