8 July 2020
Jonathan Evans, real estate director at Deloitte, comments on the Chancellor’s summer economic update
“The Chancellor has increased the nil rate band of stamp duty land tax levied on home buyers in England and Northern Ireland. From today, purchasers of residential property will not pay stamp duty on the first £500,000 of the purchase price until 31 March.
“Based on the average price of a home in England of £248,000, a purchaser can now expect to save almost £2,500 by not paying stamp duty. In addition, the average property in London (£485,000) will also be exempt and save the average purchaser £14,200. Buyers of residential properties over £500,000 will save £15,000 and the cut will also benefit those who have already exchanged, provided they complete by 31st March next year.
“This cut in stamp duty will likely help stimulate the property market, aiding home buyers that may have had their finances impacted by COVID-19.
“Purchasers in Scotland and Wales will have to wait to see if the devolved governments in Edinburgh and Cardiff match this tax holiday for their respective taxes.”
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