The Chancellor, Rishi Sunak announced the introduction of a Stamp Duty holiday as part of his summer statement which took place on Wednesday 8 July 2020.
Several new financial measures were announced in the summer statement as the Government seeks to help the economy recover from the impact of the COVID-19 pandemic.
The Stamp Duty holiday will see the threshold immediately raised from £125,000 to £500,000 until 31 March 2021.
Anyone completing a sale on their main place of residence costing up to £500,000 before 31 March will not pay any stamp duty, and more expensive properties will only be taxed on their value above that amount.
However, the holiday applies from 8 July, which means anyone completing a property purchase before that date will have to pay the full normal stamp duty.
Landlords and second home buyers are also eligible for the tax cut but will still have to pay the extra 3 per cent of stamp duty they were charged under the previous rules.
The temporary rule change is aimed at boosting the property market and helping buyers who have taken a financial hit because of the coronavirus pandemic.
The Chancellor also used his Summer Statement to announce a new £2 billion home insulation scheme, the Green Homes Grant.
Under the new scheme, which will be available for homeowners and landlords alike, the government will pay at least two-thirds of the cost of home improvements that save energy.