The plans could see the Stamp Duty Land Tax (SDLT) threshold temporarily raised from £125,000 to between £300,000 and £500,000.
Chancellor Rishi Sunak is widely expected to announce a six month SDLT holiday in his ‘Summer Economic Update’ on Wednesday.
Rumours suggest that draft legislation could see the SDLT threshold temporally raised from £125,000 to between £300,000 and £500,000. Which could save the average English homebuyer over £6,900.
Chancellor Sunak understands the moving house has far-reaching benefits for the UK economy and this could form part of a wider overhaul of property taxation that recognises property’s strategically important role.
However with both mortgage holidays and the furlough scheme due to end in the autumn, there could be a spike in forced sellers, and a fall in the number of people able to purchase.
First time buyers are already exempt from SDLT on homes under £300,000 in the UK and £500,000 in London. So the proposed changes will also make little difference to most trying to get onto the property ladder.
We will be closely monitoring the Chancellor Sunak’s announcement and will be ready to advice on any changes to the SDLT regime.
Remember whether you are a first time buyer, looking to downsize, or looking at the costs of your buy-to-let portfolio, our team of experts can help.