The temporary holiday for the Stamp Duty Land Tax (SDLT) for residential properties was extended last week for a further three months. The extension was confirmed by the government last week, and these extra three months will allow for many transactions that are already in the pipeline to be finalised.
Due to the coronavirus pandemic, the housing market was put on hold between the 26th of March 2020 and the 13th of May 2020.
After that time, the housing market was still slow, so in response, the government announced a temporary removal of SDLT fees on residential property purchases under £500,000, up from the normal threshold of £125,000. The Stamp Duty Holiday is effective for properties purchased between 8 July 2020 to 31 March 2021.
The extension will help conveyancers maintain confidence in the housing market following the pandemic. The withdrawal of the temporary increase to the amount that a purchaser can pay for a residential property before they pay Stamp Duty Land Tax is:
- Extending the nil rate band of £500,000 to the 30th of June 2021, which was due to end on 31 March 2021.
- Introducing a nil rate band of £250,000 for the period 1st of July 2021 to the 30th of September 2021.
The stamp duty extension has come as a huge relief to individuals buying residential properties as it will make it easier for them to buy a home and will overall have a positive impact on families that were previously unable to purchase a home.
The extension will apply for transactions in England and Northern Ireland with an effective date between the 1st of April 2021 and the 30th of September 2021. The effective date is usually the date of completion of the transaction.
If you have any questions or want to find out more, our experienced conveyancers can help you will all aspects of residential conveyancing including:
- Remortgages & additional mortgages
- Property transfers
- New build purchases
- Right to Buy purchases
- Lost title deeds
Find out more and view our prices here.