Stamp duty scrapped on homes under £500k

Stamp duty in the UK has been abolished for all properties under £500,000 with immediate effect in new plans set out by Chancellor Rishi Sunak (pictured).

The new temporary measures will be in place until March 31 2021.

Currently there is no stamp duty on transactions below £125,000, or £300,000 for first-time buyers for properties worth less than £500,000. This has now been raised to £500,000 as announced in the Chancellor’s summer statement to re-boost the economy after COVID-19.

The Treasury claims that these changes mean 90% of those moving property or getting onto the property ladder this year will pay no stamp duty tax. The average saving from these measures will be around £4,500 according to the Chancellor.

In addition to these temporary measures, the government will also offer vouchers of up to £5,000 for homeowners who make energy-efficiency improvements.