STAMP IT OUT
Stamp duty announcement: What did Rishi Sunak say in his speech today?
THE CHANCELLOR Rishi Sunak has announced a holiday on stamp duty on the first £500,000 of all property sales in England and Northern Ireland.
The measure - which will start immediately (from July 8) and run up until March 31 2021 - was announced by Rishi Sunak during his mini-Budget announcement in a bid to stimulate the housing market.
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What did Rishi Sunak announce on stamp duty?
Mr Sunak unveiled the stamp duty "holiday" plan as part of his economic update in the House of Commons on July 8.
The Chancellor vowed to help the country get back on its feet after the three-month coronavirus shut down.
Mr Sunak said: "I have decided today to cut stamp duty.
"Today, I am increasing the threshold to half a million pounds. This will be a temporary cut running until 31st March 2021.
What was announced in the mini-Budget?
CHANCELLOR Rishi Sunak has announced a £30billion "plan for jobs
The changes were announced in what's been described as a "mini-Budget" following the coronavirus.
Here's what the Chancellor announced:
- Young people hired by firms will get their wages subsidised by the government under its £2billion Kickstart Scheme
- House buyers will see stamp duty cut on homes up to £500,000 until next year - we've explained how it will work
- Households will get £5,000 in energy saving vouchers to help them insulate their homes - here's what you need to know
- Businesses will be given a £1,000 bonus for each employee they bring back from furlough
- Pubs and restaurant bills will be slashed by £10 a head in August
- VAT will be cut from 20 per cent to 5 per cent for businesses in the hospitality and tourism industry
"And, as is always the case, these changes to stamp duty will take effect immediately. The average stamp duty bill will fall by £4,500.
"And nearly nine out of ten people buying a main home this year, will pay no stamp duty at all."
The new move mirrors the popular measure introduced by ex-chancellor Philip Hammond in 2017 when he removed stamp duty up to £300,000 for first-time buyers buying properties worth up to £500,000.
The following year he announced that first-time shared ownership buyers can claim relief if their house was bought after November 22, 2017, for no more than £500,000.
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What is stamp duty?
Stamp duty land tax (SDLT) is a lump sum payment anyone buying a property or land over a certain price has to pay.
All house buyers in England and Northern Ireland must pay stamp duty on properties over £125,000 - although there are some exceptions.
For example, first-time buyers in England or Northern Ireland pay no stamp duty on properties worth up to £300,000.
The rate a buyer has to fork out varies depending on the price and type of property.
Rates are different depending on whether it is residential, a second home or buy-to-let.
Homebuyers pay two per cent of the value of the home between £125,001 and £250,000, and five per cent on the next £675,000.
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Have there been stamp duty holidays before?
Yes, the government has previously introduced a stamp duty holiday for Brits on two occasions.
In December 1991, Conservative chancellor Norman Lamont announced that the threshold for stamp duty would be raised from £30,000 to £250,000 for eight months.
The move was seen as a way to counter a slump in the housing market during the recession, and saw the number of home sales double, reports.
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And at the height of the financial crisis in 2008, the former Labour chancellor Alistair Darling suspended stamp duty for a year on properties costing less than £175,000.
The move was welcomed by homeowners amid the significant economic downturn.
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