On Wednesday, July 8t, Chancellor Rishi Sunak announced a thorough plan to kickstart the economy. Key measures include a stamp duty holiday, green investment and help for young workers.
The emergency stamp duty holiday, which will help revive the property market, is exciting news: homebuyers will be temporarily exempt from paying said tax for the first £500,000 of any property price, promoting an average of £4,500 savings. Running until the end of March 2021, the increase is effective immediately in the threshold from £125,000 to £500,000.
In England and Northern Ireland, you’re liable to pay Stamp Duty when you buy a residential property or a piece of land costing more than £125,000 (or, in the case of second homes, more than £40,000). This tax applies to both freehold and leasehold properties – whether you’re buying outright or with a mortgage. The fee is calculated on the part of the property purchase price falling within each band.
For example: if you’re a first-time buyer in England or Northern Ireland, you will pay no Stamp Duty on properties worth up to £300,000. As a first-time buyer, you will save up to £5,000. For properties costing up to £500,000, you will pay no Stamp Duty on the first £300,000.
The Chancellor also announced that homeowners could benefit from £2bn of grants to pay for green upgrades, which can make their houses more energy-efficient. There will be vouchers worth up to £5,000 being issued, while poorer households could get up to £10,000 to make upgrades such as loft and wall insulation. According to the official data released this Wednesday, the Treasury expects the measure to support more than 100,000 green jobs.?
Sources: BBC, The Telegraph, Gov.UK
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