In his latest Budget the Chancellor, Rishi Sunak, has announced the extension to the stamp duty holiday meaning that, those who are in the process of buying, still have the chance to complete within the extended three month period and, as a result, benefit from the savings on offer.
What is the stamp duty holiday?
The stamp duty holiday was announced last July, in response to the current pandemic, and meant that no stamp duty was payable on the purchase of residential properties under the value of £500,000. The holiday was intended to last until 31 March 2021. Before the holiday, tax would be payable for any property over the value of £125,000 – the amount being dependant on the value of the property.
What has changed?
There has been a three month extension to the stamp duty holiday until 30 June 2021.From 1 July 2021 – until 30 September, stamp duty will still not be payable on properties under the value of £250,000.From 1 October – the stamp duty will begin to apply for properties valued £125,000 and above, with pre-Covid stamp duty thresholds and levels resuming.
Can I still benefit from the stamp duty holiday?
If you are in the process of buying a property you have a greater chance, since the holiday extension, of making stamp duty tax savings. And, even if you fear you may miss the extended deadline, there are other consideration as our recent blog explains.
If you are a new buyer, it might be difficult to benefit from the scheme unless you are a cash buyer or the property is valued below £250,000. You then have until 30 September 2021 to benefit from the stamp duty holiday.