On 3 March 2021, the Chancellor made his budget speech. Within this, he announced an extension to the Stamp Duty Holiday that was due to end on 31 March 2021. The extension tapers the stamp duty holiday as follows:
- No standard Stamp Duty Land Tax (SDLT) will be payable on the first £500,000 of the purchase price. This applies to purchases of residential property purchased in England that complete on or before 30 June 2021.
- For purchases that complete between 1 July 2021 and 30 September 2021 inclusive, no standard SDLT will be payable on the first £250,000 of the purchase price of any residential property purchased in England.
- Standard SDLT rates will apply to any part of the purchase price that exceeds these amounts.
Purchases that complete after 30 September 2021 will attract standard SDLT at the normal rates.
What does this mean for house purchasers?
This is no doubt a huge relief for many home buyers with ongoing transactions; especially those at early stages or with stalled transactions where the chances of completing before the original deadline of 31 March 2021 were slim.
SDLT surcharges for second homes and investment properties and non UK resident purchasers remain unaffected and applicable.
Find out here how the extended holiday will affect you.
First time buyers
Even after the Stamp Duty holiday has ended, Stamp Duty relief may still be available for first time buyers. For transactions completing after 30 September 2021, qualifying first time buyers will not pay standard SDLT on properties with a purchase price of £300,000 or less. If the purchase price is more than £300,000, SDLT still applies on the portion of the purchase price for the property exceeding £300,000. First time buyers buying properties with a purchase price of over £500,000 will not be entitled to any relief.
How will the stamp duty holiday extension affect my purchase?
If you already have a purchase ongoing, your solicitor or conveyancer will be able to advise you on how this might affect you specifically.
Generally, however, if you were already aiming to complete your property purchase at the end of March, you should be able to proceed as planned. If you and the chain are ready for agreed dates, there should be no need to make any changes. However, if you do want to make any changes, you should advise your solicitor or conveyancer as early as possible.
If you are considering buying a property this year, this extension gives you the opportunity to pay a reduced amount of (or potentially no) SDLT. We do recommend, however, that you have sufficient funds to meet any potential SDLT liability you may have in the event the deadline(s) cannot be met.
Get an instant conveyancing quote online or speak to one of our team on 0800 988 7756. We have offices in Leeds and London. However, we also offer a distance conveyancing service, which means that we can bring our experience and knowledge to your house move, no matter where you are.