What is the stamp duty holiday and how will it work?
Reports emerged earlier this week that Rishi Sunak will announce a temporary ‘stamp duty holiday’ in his summer economic update.
According to The Times, there are plans to introduce a temporary exemption on stamp duty (SDLT) for homes at the lower end of the housing market.
This article was updated as the chancellor made his announcement on 8th July.
When will the Stamp Duty Holiday come into effect?
It comes into effect immediately, as of 8th July 2020.
How long will the SDLT holiday last?
This will be a temporary measure that will aim to stimulate the housing market at a time when the economy could be slowing.
The holiday will last until 31st March 2021.
What will the threshold for the Stamp duty holiday be?
The lower stamp duty threshold will rise temporarily to £500,000, which is a substantial increase from the current £125,000 limit.
When will the SDLT holiday be announced?
Chancellor Rishi Sunak announced the measure in his summer economic update on Wednesday 8th June.
We will have more information on this as soon as it becomes available.
How will the SDLT holiday affect you if you've already exchanged?
This will be clarified as soon as we have detailed information.
What is the effect of the stamp duty holiday on second homes?
The SDLT payable on second homes is still being confirmed however, it appears that the additional 3 % surcharge for second homes has also been increased to £500,000 meaning buyers of second homes would pay 3% on the purchase price up to £500,00 and continuing in increments thereafter.
The increments are still to be confirmed.
At this time the HMRC online SDLT calculator has not been up dated but clients can be rest assured that the HMRC online portal used by solicitors has now been updated.
Jennifer Smith, from our Residential Property Team had this to say:
“The local property market has seen a bounce since reopening at the start of June. Our teams in Christchurch and Ringwood have been extremely busy dealing with pent up demand from lockdown.
The reported stamp duty holiday could really help keep the property market moving in some potentially tough times ahead."