COVID-19: Government set to introduce Stamp Duty holiday

The Chancellor, Rishi Sunak, is set to announce the introduction of a Stamp Duty holiday in his summer statement on Wednesday 8 July 2020.

Several financial measures are expected to be announced in the summer statement as the Government looks to help the economy recover from the impact of the COVID-19 pandemic.

The Stamp Duty threshold is currently £125,000 but could rise to £500,000 according to recent reports. This is aimed at boosting the property market as the Chancellor states that he is looking to overhaul the ‘huge problem’ of Stamp Duty. However, despite this, it is believed that the new threshold will only be a temporary measure.

Millions of homeowners have already taken advantage of the mortgage payment holiday, including buy-to-let landlords, but experts have stressed that this means that homeowners will still owe the bank the same amount of capital, and they will continue to accrue interest.

As lockdown measures ease and more businesses open, the Government is now looking to address key areas of concern, and industry bodies such as RICS and NFB have voiced their support for a Stamp Duty holiday in recent months, in a bid to stimulate activity in the property market.

Tom Bill, Head of UK Residential Research, said: “A Stamp Duty holiday would provide welcome financial relief for millions of people, including first-time buyers.

“The Government understands that moving house has far-reaching benefits for the UK economy and this may form part of a wider rethink of property taxation that recognises this strategically important role.”

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