In his summer statement Chancellor Rushi Sunak has announced that he will increase the 0% stamp duty threshold from £125,000 to £500,000 effective immediately and lasting until 31st March 2021.
The move designed to add further stimulus to an already buoyant property market is expected to be very well recived by homemovers who will save significant sums of money if they move before the end of March next year.
Stamp duty was previously charged on land or property bought for £125,000 or more in England & Northern Ireland.
Previously first time buyers would pay no tax upto £300,000 and 5% on any portion between £300,000 and £500,000 so they will be saving upto £10,000.
Homemover rates were 2% on any amount between £125,001 and £250,000 and 5% between £250,001 and £925,000. With the holiday now in place they will be set to save upto £15,000.
On average homemovers will save £2,460 based on the average cost of a house in the UK.