Stamp duty scrapped on houses under £500,000

Stamp duty land tax (SDLT) is being cut until next year for purchases of up to £500,000, as announced by the chancellor Rishi Sunak today. This will take effect immediately, the move is to kickstart the housing market due to the effects of the coronavirus.

Stamp duty land tax (SDLT) is being cut until March next year for purchases of up to £500,000, as announced by the chancellor Rishi Sunak today.  This will take effect immediately, the move is to kickstart the housing market due to the effects of the coronavirus.

The treasury said nine out of ten people are moving up the property ladder or downsizing will not pay any stamp duty as a result of this. 

 

How much will buyers save?

How much a buyer in England or Northern Ireland could save under the temporary measure will depend on how much the property costs – as a general rule, the more expensive the property, the more you'll save (up to the maximum of £500,000).

For example, if you buy a property for £400,000 in England and you're not a first-time buyer, you would usually pay £10,000 (made up of £2,500 on the portion between £125,001 and £250,000, and £7,500 on the portion between £250,001 and £400,000). 

But for now, you'd pay no stamp duty on the property at all – saving you £10,000. 

The Chancellor has said the average saving will be £4,500. 

What if I've exchanged but not completed?

The requirement to pay stamp duty is triggered when you complete

the purchase of the property. So if you've exchanged prior to 8 July but

not completed, you'll benefit from the increased thresholds.