On 8th July 2020, chancellor Rishi Sunak announced that the stamp duty threshold has been raised to £500,000 for property sales in England and Northern Ireland until 31 March 2021.
This comes after the coronavirus crisis and aims to help first-time buyers as well as boosting the property market that has taken a big hit as a result of lockdown, when house viewings weren’t allowed and mortgages were much harder to get.
The average stamp duty bill is set to decrease by £4,500, with 90% of homebuyers paying no stamp duty at all this year.
For those purchasing houses above the threshold, no stamp duty is due on the first £500,000, meaning you’ll pay a percentage of the remaining cost depending on the purchase price.
Stamp Duty Rates
| Property Price | Main Residence Rate | Additional Properties Rate |
| Up to £500,000 | 0% | 3% (0% on properties up to £40,000) |
| £500,001 – £925,000 | 5% | 8% |
| £935,001 – £1,500,000 | 10% | 13% |
| £1,500,001+ | 12% | 15% |
For example, if you’ve bought a property for £650,000, then you’ll pay 5% of £150,000, which is £7,500.
First Time Buyers
In 2017, the government abolished stamp duty for most first-time buyers to help aspiring homeowners take their first steps on the property ladder.
Those claiming it were exempt from stamp duty on the first £300,000 of a property and paid 5% on the portion between £300,000 and £500,000.
Around 180,500 first-time buyers benefited from the stamp duty exemption in the first year of it being introduced in November 2017, according to statistics from HMRC.
Whilst the current coronavirus stamp duty holiday also applies to first time buyers, it is likely the first time buyer scheme will continue after March 2021.
Separate figures showed the continued uptake of other schemes intended to help buyers get on the property ladder.
Up to July 2020, a total of 325,000 properties were purchased using the Help to Buy ISA, and 270,000 were bought with a Help to Buy equity loan since the schemes were launched.
Mel Stride, financial secretary to the Treasury, said:
“I’m proud that the cut to stamp duty for first-time buyers is helping to realise the dream of home ownership for a new generation, alongside building more homes in the right areas, and generous schemes such as the Lifetime ISA and Help to Buy.”
Richard Donnell, research director at property portal Zoopla said:
“The benefits of the stamp duty holiday will be immediate and will help sustain the rebound in housing market activity across England.”
We’re happy to discuss stamp duty.