The Stamp Duty Holiday was introduced by the government last year in an attempt to help buyers who might have taken a financial hit because of Covid-19. It was due to end on 31 March 2021 and has now been extended until June 2021.
What is Stamp Duty and what does the Stamp Duty Holiday mean?
In the United Kingdom, stamp duty is a form of tax, payable when you buy property or land over a certain price.
The Stamp Duty Holiday means that until the 30th of June 2021, you will pay no Stamp Duty on properties costing up to £500,000. Before the holiday, this tax was payable on any properties over £125,000.
This Stamp Duty Holiday applies whether you’re a first-time buyer or have previously owned a property. Likewise, it applies to both freehold and leasehold properties, whether you’re buying outright or with a mortgage.
What happens after the 30 of June 2021?
From the 1st of July 2021 – until the 30th of September, you will pay no Stamp duty on properties under the value of £250,000.
From the 1st of October, the stamp duty will return to be payable for properties valued at £125,000 and above.
As a buyer, can I still benefit from the stamp duty holiday?
If you’re in the process of buying a home, there’s more time to complete your transaction and hopefully, benefit from the stamp duty holiday.
If you have not yet started the buying process, it is unlikely you’ll be able to benefit from this extension, unless you are a cash-buyer or are purchasing a home valued under £250,000, for which you’ll have until 30 September 2021 to complete.
Where do I go if I need extra support?
If you would like further help and support on how this announcement might impact you, please contact a member of our team today for expert advice. If the Stamp Duty Holiday extension has made you think about selling your home, Book a Free Valuation today.