THOUSANDS of buyers will benefit from Rishi Sunak’s stamp duty holiday announced in today’s mini-Budget.
New parents Polly Frost and Claire Tinelli are set to save £12,500 thanks to the tax cut.
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Polly Frost and Claire Tinelli with their daughter Sienna Tinelli-FrostCredit: Jake McPherson
The couple plan on moving from Bristol to Taunton so they have more space for their nine-month-old baby Sienna.
Their current three-bed house is going on the market for £400,000 but they’re looking to move to a bigger home in the countryside as Polly can now work from home full-time due to coronavirus.
Polly and Claire, 36 and 39, who work as a solicitor and graphic designer, are set to save £12,500 thanks to the stamp duty holiday.
It means they have more money to spend on moving.
Polly and Claire will save £12,500 following the stamp duty announcementCredit: Jake McPherson
Stamp duty rates
STAMP Duty Land Tax is a government tax charged when you buy a property in England or Northern Ireland.
All house buyers must pay stamp duty on properties over £125,000 – although there are some exceptions.
The rate a buyer has to fork out varies depending on the price and type of property.
Property owners don’t pay any stamp duty on the first £125,000 of homes.
They then pay 2 per cent between £125,001 and £250,000.
It is 5 per cent between £250,001 and £925,000.
Between £925,001 and £1,500,000 it is 10 per cent.
And over £1,500,001 it is 12 per cent.
Polly said: “It gives us more money to spend on a house, so we’d be saving around £12,000 – although, we wouldn’t want to go over our means.
“We are looking to move out to the countryside because we have a small family.
“I can work from home now because of Covid-19 moving forward, so we’d love to move out and get more space.”
The Chancellor has confirmed he will raise the stamp duty threshold to £500,000 until March next year in a bid to kick-start the housing market.
It means most home buyers won’t have to pay tax on their property – saving them thousands of pounds.
Faye Ratliff, 27, and boyfriend Luke, 28, will save £6,500
‘It’s a huge help as my boyfriend is on 80% pay’
First-buyers Faye Ratliff, 27, and boyfriend Luke, 28, will save £6,500 thanks to Chancellor Rishi Sunak’s mini-Budget announcement today.
The couple are due to exchange on their three-bed house in August – and the last minute tax relief is welcome news as Luke has taken a 20 per cent pay cut in his quantity surveyor role to help the business through the crisis.
Faye, who works in PR, said: “Buying your first home costs a lot more than you expect it to, so it would be a huge help to get that cash back at the moment – especially as my boyfriend is on 80 per cent pay.”
Faye is due to exchange on her three-bed house in AugustCredit: Jamie Lorriman
Faye says the couple have also been surprised by some additional costs that have come with their house purchase, as the property needs some structural work done after they move.
She added: “We found out the house needs a rewire and some work to the roof after having our survey done, so we needed to rebudget to make sure we can afford that.”
“We love the house, it is perfect for us – and we are so excited to buy our first home, so it’s been quite stressful trying to secure it during these uncertain times.”
Sophie Freeman is now in a position to buy a home again with boyfriend CharlieCredit: Susannah Ireland
While furloughed worker Sophie Freeman, 27, and boyfriend Charlie, 28, were forced to call off their search for a home during lockdown.
The couple, who live in London, have been saving for two years for a deposit and started looking for a £400,000 2-bed flat in January.
When coronavirus hit Sophie, who works in advertising, was furloughed from her job, while Charlie who is a construction project manager took a 20 per cent pay cut.
It meant they were unable to secure a mortgage on their new lower wages.
But today’s stamp duty holiday mini-budget announcement means they are now in a position to buy again.
What was announced in the mini-Budget?
CHANCELLOR Rishi Sunak has announced a £30billion “plan for jobs
The changes were announced in what’s been described as a “mini-Budget” following the coronavirus.
Here’s what the Chancellor announced:
Sophie and Charlie have been saving for two years for a depositCredit: Susannah Ireland
She said: “Not having to pay stamp duty means we have an extra few thousand pounds to put towards our deposit.
Hopefully that would help us to secure the mortgage despite the 20 per cent pay cut.”
First-time buyers previously didn’t pay tax on purchases up to £300,000 and 4 per cent between £300,000 to £500,000.
This means the stamp duty holiday will save Sophie and Charlie £5,000, allowing them to add the money to their deposit and helping them to secure a mortgage.
She added: “It’s such a huge help for first time buyers like us. Especially with everything that’s been going on, it’s been a really tough year and it felt like we might not ever be able to get our own place.
“Having that extra cash means the idea is back on the table and we might finally be able to get out of renting and into our own place – which is something to finally look forward to after all of this.”
Currently, homebuyers in England and Northern Ireland don’t pay any stamp duty on the first £125,000 of homes, they then pay 2 per cent on the value between £125,001 and £250,000, and 5 per cent on the next £675,000.
The exception to this is first-time buyers purchasing homes worth up to £500,000, who don’t pay stamp duty on up to £300,000, and then pay 5 per cent on the portion from £300,001 to £500,000.