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Coronavirus (COVID-19): Announcement to Clients

Stamp Duty Cut

No Stamp Duty For Homes Below £500,0008th Jul 2020

by on 8th Jul 2020

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The Chancellor has today announced a series of measures within his summer statement with the intention of giving the economy a much-needed boost as we slowly move out of lockdown.

One of the announcements which is directly aimed at supporting the residential housing market is to temporarily raise the zero rate Stamp Duty threshold to £500,000, taking effect immediately.

This means that any residential property purchase below the new level would be exempt from the need to pay any Stamp Duty. Any residential property purchases above this level would be subject to heavily discounted rates.

The move is intended to help buyers who have taken a financial hit because of the coronavirus crisis. It is also aimed at boosting a property market recently affected by the three-month property lockdown. The government has noted with concern that property prices appear to have dropped within the past four months, albeit only marginally.

The increase in the threshold is only a temporary measure however, and will apply only to residential property purchases that complete before March 31st 2021. The government feels this is a long enough period to help revive the housing market. After the Stamp Duty holiday period, the level of duty payable will revert back to the rates in place prior to the statement made today.

Coles Miller conveyancing Partner Jason Barnett said: “I am sure that all parties operating within the housing market will very much welcome the measures introduced by the Chancellor.

“The Stamp Duty holiday will benefit all parties purchasing homes during this period. The saving to purchasers can be fairly dramatic.

“The measures should see a real boost to the housing market which is slowly limping back into action following the period of lockdown.

“There is no better time to purchase a property or to consider a move than now – Stamp Duty rates have never been more favourable to purchasers,” added Mr Barnett, who is based at Coles Miller’s Bournemouth office.

If you would like to discuss any issues arising from this article please do not hesitate to contact any member of our Conveyancing team.