Covid-19 Mini Budget: What this means for property investors

In your video you said there will be no help for people buying properties in London, for example at £700,000. Surely by raising the threshold for stamp duty to £500,000 doesn’t that mean that the first 500,000 is exempt and then you simply pay stamp duty on the balance exceeding that amount? Regards, Peter Butler

Reply to the comment left by Peter at 09/07/2020 - 09:38
The video is slightly misleading. Everyone who is buying a property in England and NI that costs more than £500k will save £15k in SDLT including London.

That said, estate agents (snake oiled salesmen & women) have already been increasing prices on Rightmove so you won’t actually be saving anything.

The market is going to be artificially inflated until 1st April 2021.

Reply to the comment left by Peter at 09/07/2020 - 09:38Yes that’s how it works Peter.
I’m not sure the Chancellor has actually achieved anything here other than shoot himself in the foot with a reduced tax take. Presumably many sales were placed on hold and now catching up, with buyers quite willing to have paid the Stamp Duty previously. Now they have been given a few thousand pounds saving but this isn’t going to do the Government’s coffers any good. Those sales would have proceeded anyway. Other sales will have been cancelled completely due to buyers being furloughed or losing their jobs or businesses. A Stamp Duty reduction will be of no relevance to them now.
As has been mentioned this SDLT reduction will simply push prices up.
Also the VAT reduction to 5% will probably have no effect. I’d booked a few days holiday in a small guest house in North Wales before lockdown at £40 per night. Is the proprietor really going to charge me £35 now or leave the price at £40 and try and recoup some of his losses over the last few months ?
Also the £1,000 bonus for keeping a furloughed employer on the books until next year. There’s either a job for the employee or not I really can’t see an employer keeping somebody on if they’re not required. Also employers who would have keep an employee in the job anyway are going to receive £1,000 for nothing. Crazy idea IMHO.
I like the meal voucher scheme though just a shame it’s not valid Monday to Friday. I can see them turning customers away Monday to Wednesday as they have reduced table space and not seeing them until the following week when they turn them away again !! Monday to Sunday (7 days) would have been so much better.

What about Scotland? Does the stamp duty relief apply there as well? It says UK then it says England and NI, so it is not clear.