After much talk of the stamp duty land tax (SDLT) holiday being extended past its original deadline of 31 March 2021, Rishi Sunak has now officially confirmed that he is extending the holiday until the end of June as part of his Budget plans.
The chancellor had been pushed to extend the deadline in recent months, notably the recent online petition which gathered over 150,000 signatures, as many people have been rushing to complete their transactions before the deadline date of 31 March.
The stamp duty holiday has enabled people to save up to £15,000 in tax, and has appeared to have a positive impact on the housing market which the chancellor is keen to keep firing. Last year, house sales had increased to their highest level since before the 2007 financial crisis.
The Centre for Policy Studies is now calling for the threshold to be permanently increased by the government, or to be abolished altogether.
Vik Roda, Founder of Mortgagez said: “The recent stamp duty holiday has been an immense help in keeping the housing market afloat during the pandemic, it has taken a lot of financial stress off the shoulders of home buyers in recent months.”
If you are unsure what SDLT is, it is usually applicable on purchase of property or land above a certain amount; the recent holiday set a threshold of £500,000. However, the threshold is usually set for £125,000 for residential properties.
It’s worth remembering that first time buyers will still be able enjoy a zero-rate £500,000 threshold even after the new SDLT holiday reaches its deadline in June 2021.
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PLEASE NOTE: Article written 24 February 2021, article amended 8 March 2021. 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. *
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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: February 2021 060121 MZ000174
