The UK government has drawn up proposals to exempt most home buyers from paying stamp duty in a bid to boost the housing market’s recovery from the Coronavirus pandemic.
As reported in The Times, chancellor Rishi Sunak could raise the property tax threshold at which people start paying stamp duty from £125,000 to as high as £500,000.
This temporary exemption, intended to stimulate the housing market, is set to be announced in the autumn budget on Wednesday (8 July) along with several other measures designed to boost the economy,
Currently, stamp duty is not charged on the first £125,000 of the property selling price, with a 2 per cent rate up to £250,000 and 5 per cent on the next £675,000. The new levy threshold, which would be put in place for six months to increase property demand, is likely to be set at somewhere between £300,000 and £500,000.
First-time buyers are already exempt from paying the duty on homes under £500,000 in London and £300,000 in the rest of the country.
However, in the wake COVID-19 pandemic which has seen a fall in UK house and flat prices according to mortgage lenders’ and property listing sites, the government is planning to give the housing market a much-needed boost.
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