Yesterday's cut in Stamp Duty is a welcome shot in the arm for the UK's housing market. Here's how it will affect buy to let investors - in numbers.
Chancellor of the Exchequer Rishi Sunak announced yesterday that there will be no stamp duty on homes selling for £500,000 or less. This temporary holiday will last until the end of March 2021.
The 0% threshold therefore rises immediately from £125,000 to £500,000.
The Treasury later confirmed that the additional home stamp duty surcharge, currently 3% over and above the standard rates, will remain as before.
The change will affect first time buyers the least, their 0% threshold already stands at £500,000 within London and £300,000 in the regions. However, buyers trading up will benefit. This is likely to free up many properties in the lower price brackets, where there is currently a shortage of supply.
The new bands are -
These rates only apply in England and Northern Ireland. Scotland and Wales have their own tax regimes which, for the moment, remain unchanged.
Example savings for buy to let investors
Combined with the low value of Sterling and record low interest rates, the new Stamp Duty savings make the coming months a prime time for expat investors.