The stamp duty holiday has been extended until the end of June, benefiting thousands of homeowners who were at risk of missing the original deadline of 31st March.
The Chancellor Rishi Sunak confirmed in his Budget speech that the Government will extend the temporary increase on purchase up to £500,000 until 30th June.
In order to support a smooth withdrawal of support, the nil rate band will then reduce to £250,000 until 30th September, when it will return to the original nil rate band of £125,000 from 1st October.
The Government originally waived Stamp Duty Land Tax (SDLT) in England and Northern Ireland for all properties valued up to £500,000 in July last year. The holiday was introduced to help buyers whose incomes may have been impacted by coronavirus, and to provide the property market with a boost following the easing of the first round of lockdown measures. Landlords and those buying second homes also benefit, though they must continue to pay the 3% stamp duty surcharge which applies to additional properties.
The stamp duty holiday was due to finish at the end of this month, but a huge surge in activity in recent months has meant there’s a backlog of sales waiting to complete. That could have meant some buyers would miss out if they couldn’t meet the March deadline and could have jeopardised deals that have yet to go through.
It is hoped that the extension will provide enough time for deals that are already underway to benefit from the stamp duty saving.
Stamp duty in Scotland and Wales
Scotland and Wales set their own land taxes, so different rules apply in each of these countries.
The Welsh Government has announced its temporary zero threshold of £250,000 will be extended to 30th June, after which it will reduce to its usual band of £180,000. Those buying second homes must still pay an additional 3% surcharge.
At the time of writing, the Scottish Government has yet to announce an extension to its stamp duty holiday.
The current threshold at which homebuyers must pay stamp duty in Scotland is £250,000, up from the usual threshold £145,000 (£175,000 for first-time buyers). Purchases of additional properties in Scotland are still subject to an additional 4% stamp duty surcharge.
You can see how much stamp duty may be payable using our Stamp Duty Calculator but do bear in mind the deadline dates.
Stamp duty holiday extension