Helping to boost a stagnant property market
As you may have already heard, the government has temporarily increased the stamp duty threshold to £500,000 for property purchases in England and Northern Ireland, until 31 March 2021. In other words there will be no stamp duty charged on properties costing up to £500,000.
The decision was taken to help boost a stagnated property market due to the coronavirus pandemic and to assist buyers in purchasing property.
Statistics show that the average stamp duty bill will fall by £4500 and nearly 90% of people not paying any stamp duty as a result of this decision.
There are a few further important bits to bear in mind especially on purchases greater than £500,000. The next portion of the property's price (£500,001 to £925,000) will be taxed at 5%, and the £575,000 after that (£925,001 to £1.5 million) will be taxed at 10%. The remaining amount (over £1.5 million) will be taxed at 12%. These tax changes have also resulted in a decrease for the purchase of additional properties. Full table shown below:
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