The chancellor is expected to announce changes to stamp duty today to help cut costs for those looking to buying a home.

It’s understood that the level at which the tax is charged could be raised to £500,000 to boost the property market and help buyers struggling because of the coronavirus crisis. The measure, if confirmed, is expected to only be in place for the short term.

What is Stamp Duty?

Currently in England and Northern Ireland you’re liable to pay Stamp Duty when you buy a residential property, or a piece of land, costing more than £125,000 (or more than £40,000 for second homes).

This tax applies to both freehold and leasehold properties – whether you’re buying outright or with a mortgage.

If you’re buying a property in Scotland you will pay Land and Buildings Transaction Tax (LBTT) and in Wales Land Transaction Tax (LTT) instead of Stamp Duty.