After Rishi Sunak’s grand announcement on the 3rd March 2021, it appears now more than ever is the best time for those looking to buy their home. Despite the pandemic, it is unquestionable that the housing market shall continue to thrive by virtue of the extended stamp duty holiday.
Initially, the holiday was implemented to minimise the financial effects of the pandemic and to encourage more buyers to enter the property ladder. The scheme, since its introduction, has become increasingly popular, and so the extension until the 30th June 2021 is met with a greatly anticipated welcome. As the Chancellor confirmed the extension will “smooth the transition back to normal”.
Under the extension, buyers who complete their transaction before the 30th June will not be subject to stamp duty, so long as the property’s value does not exceed £500,000. As stamp duty land tax is a progressive tax, any portion of the purchase price which surpasses this threshold, will then be taxed in line with the table below:
This change to stamp duty will see the previous thresholds, of £125,000 and £300,000 for second and first-time buyers retrospectively, deferred until October 1st 2021.
If you are seeking to utilise the stamp duty holiday, please get in touch with a member of our team and we will be eager to begin your conveyance quickly. To contact Lewis Denley’s Residential Property team, please contact us here.
| Property value | SDLT rate |
|---|---|
| Up to £500,000 | Zero |
| The next £425,000 (the portion from £500,001 to £925,000) | 5% |
| The next £575,000 (the portion from £925,001 to £1.5 million) | 10% |
| The remaining amount (the portion above £1.5 million) | 12% |
After this period, the second stage of the transition will be imposed. Buyers whose transactions complete between the 1st July and the 30th September, will still be able to benefit from the stamp duty holiday, however, the threshold limit within this stage will be reduced to £250,000. Similar to the first stage, any amount which exceeds this, will be applied in line with the table below:
| Property value | SDLT rate |
|---|---|
| Up to £250,000 | Zero |
| The next £675,000 (the portion from £250,001 to £925,000) | 5% |
| The next £575,000 (the portion from £925,001 to £1.5 million) | 10% |
| The remaining amount (the portion above £1.5 million) | 12% |
This change to stamp duty will see the previous thresholds, of £125,000 and £300,000 for second and first-time buyers retrospectively, deferred until October 1st 2021.
If you are seeking to utilise the stamp duty holiday, please get in touch with a member of our team and we will be eager to begin your conveyance quickly. To contact Lewis Denley’s Residential Property team, please contact us here.