In a further boost to the property market, Chancellor of the Exchequer, Rishi Sunak today announced as part of his budget that the stamp duty holiday will be extended.
The stamp duty holiday was originally brought in on 8th July 2020 in order to stimulate the property market as a response to the impact of the coronavirus pandemic. It saw the rate of stamp duty on properties up to the value of £500,000 reduced to 0%, meaning a potential saving for home buyers of up to £15,000. The stamp duty holiday was meant to end on 31st March 2021.
With the original deadline fast approaching buyers and sellers alike have been keen to wrap up their property sales before the deadline with some uncertainty surrounding those sales unlikely to achieve this, as a result of the financial impact it would have.
The stamp duty holiday will now be extended until 30th September 2021. There’s a three month extension to the £500,000 0% rate, which will now end on 30th June 2021. Then, as part of the new tapered relief, the 0% rate will be reduced to £250,000, double its normal level, until the end of September. This will mean a gradual return to previous rates of Stamp Duty Land Tax (SDLT) as opposed to the sudden and significant financial impact of the original end of the stamp duty holiday.
This is fantastic news for buyers and sellers alike, with the potential to save thousands on a property purchase. If you’re thinking about moving, now is the time to buy and sell property! Get in contact with your local ME Estate Agents office today to get a FREE valuation of your property.
You can work out the rate of Stamp Duty tax on your property purchase using our Stamp Duty calculator.