In a bid to reinvigorate the economy after the first national lockdown in March 2020, Rishi Sunak announced the threshold for stamp duty would be increased to £500,000 until 31st March 2021, when the threshold would return to £125,000.
It is rumoured that the Chancellor is now preparing to extend the holiday by three months until the end of June, bringing the deadline in line with the easing of lockdown restrictions in the summer.
Many buyers and sellers have already benefitted from the stamp duty holiday, with some saving up to £15,000. The holiday provided the housing market with a significant boost and gave many buyers and sellers the confidence to move.
As we have been approaching the deadline, many have called for an extension to allow buyers and sellers to benefit from the holiday and avoid a ‘cliff-edge’ scenario where transactions would fall apart at the last minute. Rightmove estimated in their latest House Price Index that around 100,000 were still likely to miss out on the tax-saving as they would not legally complete before the 31st March.
By granting a greater amount of time to complete purchases, the Chancellor has allowed buyers and sellers more time to find their dream home with a greater saving.
For further advice and guidance on the stamp duty holiday extension, please don’t hesitate to get in touch with our team here.