How much money do I really save with the stamp duty holiday?

PUBLISHED: 11:04 09 July 2020 | UPDATED: 11:19 09 July 2020

Rishi Sunak making his announcement to the House of Commons. Pic: PA/Jessica Taylor

Rishi Sunak making his announcement to the House of Commons. Pic: PA/Jessica Taylor

The chancellor announced a cut to stamp duty on buying homes up to the price of £500,000 in his mini budget.

But what saving does that mean?

Calculating stamp duty, payable by the purchaser, depends on the price of the property. Before Mr Sunak’s announcement, on main homes you paid nothing up to £125,000 and then 2pc up to £250,000, 5pc up to £925,000 and 10pc up to £1.5m.

You may also want to watch:

MORE: Up to 1,600 jobs could go at Burger King

So, if you were buying a house for £275,000, the stamp duty was £3,750. This was worked out on nothing up to £125,000 but then 2pc on the next £125,000 (£2,500) and 5pc on the final £25,000 (£1,250.) With the stamp duty break, which comes into effect immediately and lasts until March 31 2021, you would pay nothing.

Stamp duty is payable on completion, and the cut does apply to landlords and second home owners but if you fall in this category, you still have to pay the extra 3pc surcharge that existed before.

Mr Sunak said nine out of 10 people buying a home would pay no stamp duty.

If you value what this story gives you, please consider supporting the Eastern Daily Press. Click the link in the orange box below for details.

Become a supporter

This newspaper has been a central part of community life for many years, through good times and bad, serving as your advocate and trusted source of local information. Our industry is facing testing times, which is why I’m asking for your support. Every single contribution will help us continue to produce award-winning local journalism that makes a measurable difference to our community.

Thank you.

Most Read

Most Read

Latest from the Eastern Daily Press