The government enacted the Stamp Duty Holiday for England.
What this means for you
Until June 30th 2021, you won’t have to pay Stamp Duty tax on the first £500,000 of your purchase (unless it’s a second home). This discount had previously been due to end on March 31st.
From July 1st to September 30th, you won’t have to pay it on the first £250,000 of the purchase price (again, unless it’s a second home).
From October 1st onwards the Stamp Duty rates will go back to the rates used in July 2020.
First time buyers will still get a tax discount and will only be required to pay the tax on homes over £300,000.
What does this mean for customers sitting in conveyancing?
The extension will give a lot of our customers a greater chance of completing before the scheme ends and ending up with an unwanted tax bill.
This will come as a relief to those who have experienced delays in the conveyancing process and had been under increasing pressure to complete before the end of March 2021.
But plenty of people are planning to move soon regardless of today’s announcement!
You can use this government tool to check how much you might need to pay in Stamp Duty.
Is there still time to make use of the tax holiday?
The Stamp Duty Holiday was extended by three months. While it's possible to buy a home in that time, it’s certainly not guaranteed and the deadline is rapidly approaching.
Could you afford to buy if you missed the deadline and had to pay the full Stamp Duty? If not, you might want to wait, or adjust your budget to allow for the possibility of missing the deadline.