The recent Stamp Duty Land Tax (SDLT) holiday has been a huge success in providing support for homebuyers amid the global pandemic, but the government has now confirmed that there are no plans to extend this support measure past the agreed end date of 31 March 2021.
This was confirmed after a recent petition to extend the holiday by a further six months gathered over 27,000 signatures, triggering a response from the government:
“The Stamp Duty Land Tax holiday was designed to be a temporary relief to stimulate market activity and support jobs that rely on the property market. There are no plans for it to be extended beyond March.”
So if you are looking to move house and haven’t yet started the process, it is vital that you now factor in the potential SDLT cost. This is because it cannot be guaranteed that the transaction will be completed by 31 March 2021 due to the sheer volume of recent house purchases.
For those who need refamilarising with what SDLT is, under normal circumstances it is a tax that is applicable on the purchase of property or land above £125,000 (for residential property). However, the recent SDLT holiday set a new zero-rate threshold of £500,000 below which no stamp duty is payable up to and including 31 March 2021. This has brought a welcome boost to the housing market during the COVID outbreak.
It’s worth noting that first time buyers will still be able enjoy a zero-rate £500,000 threshold even after the recent SDLT holiday reaches its deadline in March 2021. Good news for anyone who is still looking to get their foot on the property ladder but hasn’t yet managed to.
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PLEASE NOTE: Article written 22 December 2020. Information contained within this article is likely to change and therefore should not be relied upon or form part of any form of decision making without seeking professional advice. * interest rate at the time of article being written and may be subject to change.
YOUR HOME MAY BE REPOSSESSED IF YOU DON’T KEEP UP REPAYMENTS ON YOUR MORTGAGE
Any guidance and/or advice contained within this document is subject to the UK regulatory regime and is therefore restricted to consumers based in the UK. Any technical or regulatory information contained within this document was correct at the time of producing it but as it may be subject to change it should not be exclusively relied upon when making a financial decision. The Financial Conduct Authority does not regulate advice on Buy to Let mortgages.
Article written: December 2020 301220 MZ000156
