The UK government has announced a reduction in stamp duty tax for most homebuyers. The new stamp duty tax rate will be 0% for the first £500,000 of any property purchase, up from the previous rate of 2%. This change is effective from 8 July 2020 and will remain in place until 31 March 2021.
The move is part of the government’s plan to help stimulate the housing market and support those looking to buy a home. It is estimated that this change could save homebuyers up to £15,000 in stamp duty tax.
The government has also announced that it will be introducing a new ‘Help to Buy’ scheme which will provide financial assistance to those looking to purchase a property. This scheme will provide a 20% equity loan to those who are eligible, which can be used towards the purchase of a new build property.
The government has also announced that it will be increasing the amount of money available through its ‘Lifetime ISA’ scheme. This scheme allows people to save up to £4,000 each year and receive a 25% bonus from the government. This bonus can then be used towards the purchase of a first home.