Who will benefit from the stamp duty cut?
The decision to increase the nil-rate stamp duty band from £125,000 to £250,000 means an extra 200,000 buyers in England and Northern Ireland will pay no stamp duty whatsoever.
While the Chancellor’s announcement will provide financial relief to everyone moving up or down the property ladder to a certain degree, Adrian Anderson, Director of property finance specialists, Anderson Harris noted that it will be “especially good” for people living in London and the South East, who can claim a discount on purchases up to £625,000.
Assuming that the existing stamp duty bands remain unchanged, the permanent cut means that the stamp duty bill on an average £312,000 home in England will fall from £5,600 to £3,100 – a drop of 80 percent.
Though the tax cut was announced with first-time buyers in mind, industry experts have highlighted that it is more accommodating to those in the higher price range.