Stamp duty holiday 2020: the changes to property tax Rishi Sunak is expected to announce ahead of his autumn budget

The government could be set to increase the stamp duty threshold to £500,000

Monday, 6th July 2020, 3:27 pm
Updated Monday, 6th July 2020, 4:55 pm
Rishi Sunak is reprotedly set to increase the stamp duty tax threshold

The government is set to exempt the majority of homebuyers from paying stamp duty tax.

According to The Times Chancellor Rishi Sunak will outline plans this week to raise the threshold at which people start paying stamp duty from £125,000 to as high as £500,000.

The measure would be applied in England and Northern Ireland. It is unclear if the Scottish government will be raising LBTT - the Scottish version of stamp duty – in line with the Westminster government.

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It is expected that the threshold will be implemented at the Autumn budget in an attempt to kick start the British economy.

It is thought that the measure will be introduced temporarily in what has been billed a stamp duty holiday, with reports suggesting it could be in place for six months.

When will the new measures come into force?

Mr Sunak could unveil the new measures at an economic update which he is due to deliver to the House of Commons on July 8.

Alternatively the reported measure could be announced by the Chancellor at the autumn budget in October.

Which other measures could the government introduce?

More than £100 million is to be invested in traineeships for young people in response to the coronavirus crisis, the Government has said.

Businesses offering the unpaid placements in England will receive a £1,000 bonus per trainee under the £111 million scheme.

Chancellor Rishi Sunak will announce the move for 18-24 year olds on Wednesday as he unveils an economic strategy to deal with the aftermath of the Covid-19 pandemic.

It comes as new data from the Centre for Retail Research revealed more than 24,000 jobs have already been lost at high street retailers in the first half of 2020, while almost 32,000 positions are still at risk of being permanently axed if more stores close.

Traineeships boost

A Treasury spokesperson said: "The Government are making available three times more funding to providers this year to pay for tripling the number of trainees, and also increasing the funding providers receive for training.

"Businesses will also get a £1,000 bonus payment from the Government for every trainee they offer a work experience placement to.

"Employers who are new to providing trainees with work experience, or growing their existing offer, will also be eligible for the payment.

"Evidence shows three-quarters of 18 to 24-year-olds who complete traineeships move on to employment or further study within 12 months."

The expanded scheme will be in place in England from September 2020.

The Government said it will also provide £21 million to the devolved administrations in Scotland, Wales and Northern Ireland for similar initiatives.