Stamp duty is exclusive to England and Northern Ireland. Homebuyers in Scotland have to pay Land and Buildings Transaction Tax, while in Wales it’s the Land Transaction Tax for any purchases completed on or after April 1, 2018. Stamp duty applies on: freehold properties, new or existing leaseholds, shared ownership schemes and transferred land or property.
Chancellor Rishi Sunak unveiled a stamp duty cut in July in an effort to boost the housing market during the pandemic.
The Chancellor raised the threshold at which buyers have to start paying stamp duty with immediate effect.
The move from the Treasury means almost nine out of 10 transactions are no longer subject to stamp duty, according to Zoopla.
But since the stamp duty holiday is only expected to run until March 31, 2021, how much will the full rate be after?
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From April 1, 2021, first time buyers will be eligible for a discount for properties of up to £500,000.
To be eligible, you and anyone you’re buying with both need to be first time buyers.
At the discounted rate, you will pay nothing on a property up to £300,000.
Any land or property bought costing more than £500,000 will have to pay five percent in stamp duty.