So it finally happened and the government decided to freeze stamp duty. After a month of dithering and bringing the UK housing market to almost a complete standstill after mentioning that they “might” freeze stamp duty, it has been announced that this suspension is now in force for a 12 month period to help ease the housing market problems.
The removal of stamp duty is only for properties with a purchase price upto £175,000. The average UK house price is below this mark so should help your average house buyer. The main intention is to help first time buyers to get onto the property ladder. With the potential savings of upto £1,750 in taxes, this makes the purchase of a home less than the threshold very lucrative.
All stamp duty amounts other than this remain the same. Beginning at 1% for houses between £175,000 and £250,000, increasing to 3% and upwards for more expensive properties. The move will cost the government in the region of £1billion but was seen as essential to kickstart the house buying market once more.