Chancellor Rishi Sunak set to raise the exemption threshold for the tax from £300,000 to £500,000 with immediate effect in his emergency summer Budget on Wednesday 8th July, in order to aid the economy and the housing market.
Buying a home worth up to £500,000 would usually incur stamp duty of up to £15,000 but this cost will be scrapped for six months under the new system.
In turn, stamp duty on a £750,000 house would fall from £24,286 to £9,286 — a saving of £15,000.
At the luxury end of the market, purchasers who spend £1 million on a property normally spend £27,500 in stamp duty. This will be slashed to £12,500, according to Savills, where analyst Lawrence Bowles said: “A stamp duty holiday would be a welcome boost to a market still in the early stages of recovery.
“Buyers are facing a tougher lending environment, with banks demanding higher deposits. Reducing the upfront cost of stamp duty would be a welcome help, especially to young Londoners struggling to save for their deposit, which is always the stumbling block.”