Will there be a stamp duty ‘holiday’?

Chancellor Rishi Sunak will lay out his plans to attempt an economic recovery for the UK economy today.

There has been all sorts of speculation as to what that may include.

The Chancellor is under a great deal of pressure to do as much as possible to protect employment. It is understood that there may be training and apprenticeship schemes to kickstart the economy.

The housing market has been struggling during lockdown. One possible option for Mr Sunak would be to raise the stamp duty exemption threshold meaning that many more people buying houses would not pay any stamp duty.

In the current system you do not pay any stamp duty on the value of a property up to £125,000.

You then pay a lump sum equivalent to two per cent of the value of the property up to £250,000 and five per cent on the next £675,000.

The rules are different for first-time buyers, who are exempt from stamp duty for properties up to £300,000, and then must pay five per cent on the portion from £300,001 to £500,000.

We also wait with interest to see whether the VAT rate will be altered, either across all sectors, or possibly cuts for the leisure and hospitality sector.

The statement will be made around 1pm today after Prime Ministers Questions. This will be broadcast live online and on television.

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