3rd March 2021
Commenting on the extension to the stamp duty holiday, Rachel Silvester, head of residential conveyancing at Myers & Co Solicitors, welcomed the move by Rishi Sunak in the Spring Statement:
‘The extension will be welcomed by buyers and sellers struggling to complete house purchases by 31 March 2021, and professionals throughout the conveyancing process. While we will be continuing to progress all transactions as quickly as possible, this will provide a benefit to those people who might have struggled to meet the deadline due to complexities along the chain.’
Rather than the cliff-edge deadline that we were facing, the Stamp Duty Land Tax (SDLT) holiday has been extended until 30 June 2021. For home-buyers who would have missed the deadline, this provides up to a £15,000 stamp duty saving.
According to Rightmove the average value of property sales in Staffordshire is nearly £220,000, so this provides a significant benefit to many of our clients.
The next phase provides for a further three months from 1 July to 30 September with a reduced holiday saving of up to £2,500, as the nil rate stamp duty band will reduce from £500,000 during the holiday to £250,000 between 1 July until 30 September 2021. From October it will revert to its previous level of £125,000. The UK average house price is £250,000, so this policy takes an average home out of the stamp duty system for the next 6 months.
This article is for general information only and does not constitute legal or professional advice. Please note that the law may have changed since this article was published.