Stamp duty scrapped for homes under £500,000

Stamp duty will be abolished on all homes bought for up to £500,000 in England until next March as part of measures to help boost the economy following the coronavirus pandemic.

The cut will last until March 2021, in hopes that it boosts the number of people buying and building houses.

Mr Sunak said the average home buyer would save more than £4,000.

If a buyer was to purchase a house at the end of the threshold for around £500,000 that would mean a £15,000 tax saving.

There were concerns that a delay to implementing the change would essentially freeze the market, however the Chancellor has confirmed the tax will be lifted immediately.

It came as Mr Sunak delivered a ‘mini budget’ in Parliament today which aimed to kickstart the economy following the lockdown and to soften the blow from the crisis.

Other measures introduced include a cut in VAT for hospitality and leisure businesses from 20% to 5%, while the government will also subsidise some meals between Monday and Wednesday to help encourage people to visit restaurants.

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