July 6th, 2020
The Government is considering introducing a six-month stamp duty (SDLT) holiday to revive the housing market later this year.The temporary measure would remove tax on the purchase of homes at the lower end of the housing market.
Treasury officials are said to be looking at raising the threshold at which homebuyers start paying SDLT.
Rishi Sunak has drawn up proposals to exempt most homebuyers from paying any stamp duty under plans to kick-start Britain’s economic recovery.
Currently homebuyers don’t pay any SDLT on the first £125,000 of homes, then 2 per cent of the value of the home up to £250,000 and 5 per cent on the next £675,000. The new SDLT threshold could be set as high as £500,000.
The increase in the threshold, which is expected to be implemented in the autumn budget, is a temporary measure intended to stimulate the housing market. Mr Sunak will announce the plans on Wednesday as part of several measures to support the economy, including a temporary VAT cuts for pubs, restaurants and cafés to help protect 2.4 million jobs in the hospitality sector.