Many of our clients will be excited today to hear the Chancellor announce that the stamp duty threshold will temporarily (until 31 March 2021) be increased to £500,000 before any stamp duty becomes payable. This is a windfall for those clients who are about to complete on a property purchase where they could be saving as much as £15,000 and in my opinion this may encourage those who had contemplated buying their first property or moving home to start their search.
Those buying a second property will also benefit from the changes with an overall reduction in the amount of stamp duty to be paid.
This will certainly help support continued recovery of the residential property market and is welcome news for residential property lawyers.
The government has increased the lower stamp duty threshold to £500,000 for property sales in England and Northern Ireland. That means any property purchases below the new level will not need to pay stamp duty as long as the deal is completed before 31 March 2021. People buying second homes and buy-to-let properties will also benefit, but will still have to to pay the 3% extra duty due on the entire price.