Chancellor of the Exchequer Rishi Sunak is rumoured to have drawn up proposals to increase the Stamp Duty Land Tax (SDLT) threshold.
The Times has reported that he will reveal plans this week to increase the threshold from £125,000 to as much as £500,000.
Prime Minister Boris Johnson has previously said that he wants to overhaul stamp duty, calling it a “huge problem”.
Currently, SDLT is not payable on the first £125,000, with the rate being 2% up to £250,000. Homebuyers pay 5% on the value of the property up to £925,000 and from £925,001 to £1.5 million, the SDLT rate is 10%.
The remaining amount, meaning any portion above £1.5million, has a SDLT rate of 12%.
If reports that Mr Sunak is considering increasing the threshold to £500,000 for a temporary period are correct, then with the average house purchase in Britain being £232,000, the move would represent a saving of £2,140 on average.
First-time buyers can claim already discount on SDLT and don’t pay any tax on properties up to £300,000.
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