Stamp Duty suspended for purchases under £175,000

The Government has announced that stamp duty is to be suspended on homes sold for below £175,000.

The move, which raises the threshold at which 1% stamp duty is paid from £125,000, could save homebuyers up to £1,750.

The concession comes alongside measures to help first-time buyers and homeowners struggling with mortgage repayments, unveiled earlier today.

The change is effective on residential property transactions completed from tomorrow, 3rd September.

Ministers estimate that half of all property transactions will now be exempt from the tax, compared with one-third when the threshold stood at £125,000.

The raised threshold will only apply for the next twelve months but will bring relief to many as according to the latest survey by Nationwide, the average price of a home in the UK stood at just under £165,000 in August.

Ministers estimate that changes in Stamp Duty will cost around £600 million in lost revenue.

The Government also plans to spend around £200 million helping households struggling with mortgage repayments.

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