BRITS could be set for a "holiday" on stamp duty in 2020 as the Treasury aims to kick-start the economy after the coronavirus pandemic.
The measure is set to be revealed by the Chancellor Rishi Sunak in a bid to stimulate the housing market.
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When is Rishi Sunak's stamp duty announcement?
Rishi Sunak is expected to unveil the new "stamp duty holiday" as part of his economic update, which will be delivered in the House of Commons on Wednesday afternoon (July 8).
It is understood to be a policy being considered by Mr Sunak for his Autumn Budget.
It is expected that the Chancellor will raise the property threshold as high as £500,000, meaning most homebuyers won't have to pay any stamp duty.
Currently property owners don't pay any stamp duty on the first £125,000 of homes, then two per cent of the value of the home up to £250,000 and five per cent on the next £675,000.
The Sun revealed on Saturday that ministers were considering a six-month stamp duty holiday to revive the housing market.
The new move would mirror the popular measure introduced by ex-Chancellor Philip Hammond in 2017 when he removed stamp duty for all first-time buyers.
The following year he announced that first-time shared ownership buyers can claim relief if your house was bought after November 22, 2017, for no more than £500,000.
What is stamp duty?
Stamp duty land tax (SDLT) is a lump sum payment anyone buying a property or land over a certain price has to pay.
All house buyers must pay stamp duty on properties over £125,000 – although there are some exceptions.
For example, first-time buyers in England or Northern Ireland pay no stamp duty on properties worth up to £300,000, or £500,000 in London.
The rate a buyer has to fork out varies depending on the price and type of property.
Rates are different depending on whether it is residential, a second home or buy-to-let.
It comes as new figures show a sharp drop in house prices for the second month running in June, with the average value of a home down by 1.4 per cent, according to lender Nationwide.
What is Rishi Sunak expected to announce?
The Chancellor is expected to introduce a range of policies in his autumn budget, as the Treasury seeks to restart the economy after months of coronavirus lockdown.
Another possible measure being considered is removing stamp duty land tax (SDLT) on vacant land.
The move is designed to take advantage of disused land to boost the development of new house-building projects.
Other measures being discussed include a cut on VAT for pubs and restaurants to help protect jobs in the hard-hit hospitality industry.
Plans are also being discussed for new apprenticeship schemes, whereby companies could be given £1,000 to take on trainees.
The Treasury is also expected to invest £100million in traineeships for young people.
And about 270,000 more young people will benefit from jobs advice through a £32million investment in the National Careers Service.
The government has also announced a £1.4bn package for the arts industry, which will help to save theatres and live music venues which remain closed to curb the spread of the virus.
Restaurants, pubs and cafes reopened on July 4 as part of 'Super Saturday', and
But there are fears that, without drastic intervention, many jobs could be lost in the coming months – with the Chancellor aiming to stop young people bearing the brunt of lockdown.
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