Chancellor Rishi Sunak has recently announced that the stamp duty holiday has been extended for a further three months.
Originally set to end on 31st March this year, the extension means that property purchases up to £500,000 will continue to be exempt from the tax. Homes bought up to a value of £250,000 will also be exempt until the end of September.
Stamp Duty Land Tax (SDLT) has to be paid if you buy a property or land over a certain price. The tax is only applicable in England and Northern Ireland (different taxes apply in Wales and Scotland).
The amount of tax payable depends on the value of the property or land being bought, and whether or not you’re a first time buyer.
Before the stamp duty holiday was implemented in July 2020, there was no stamp duty on properties up to the value of £125,000.
House buyers paid 2% on any amount between £125,001 and £250,000. The next bracket meant that they paid 5% tax on any amount between £250,001 and £925,000.
The holiday was introduced last summer as a way to revive the housing market following its decline during the first COVID lockdown. It means that residential properties under the value of £500,000 are no longer charged any stamp duty.
– The stamp duty holiday will be extended by three months until 30 June 2021.
– From 1st July until 30th September, buyers won’t have to pay any stamp duty if their property is valued under £250,000.
– From 1st October, buyers will begin to pay stamp duty on any property over £125,000. By this point, all of the rates will have returned to what they were prior to the holiday.
If you have not yet started the process of purchasing a property, you are unlikely to benefit from the extension. This is because it often takes longer than three months to complete the buying process.
But if you are a cash buyer, you may still have time to complete a purchase before the stamp duty holiday ends, as long as you find a property soon.
If you’re an existing buyer, you will hopefully be able to benefit from the stamp duty holiday because of the extension.
If you’re a potential buyer wanting to make the most of this stamp duty holiday extension, get in touch with Abode today.
We have numerous properties available, and are here to assist you with every step of your buying journey. Contact us via our easy online form, or phone one of our Crosby, Formby or Allerton branches now.