How much money do I really save with the stamp duty holiday?
PUBLISHED: 11:04 09 July 2020 | UPDATED: 11:19 09 July 2020
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.
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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.
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