Stamp Duty - Latest Government Decision

Published: 06/04/2021 By Musgrove & Co

Stamp Duty


Rishi Sunak announced that the stamp duty holiday on the purchase of houses will extend for another three months.

Since July last year, the property purchase tax has been suspended on the first £ 500,000 of all sales in the UK and Northern Ireland. Tax breaks, for now, will continue until the end of June. The nil rate band will then be set at £ 250,000 - by the end of September - double its standard level.

The stamp duty holiday was started to help buyers who were financially affected because of the coronavirus. The aim was to boost the property market affected by the lockdown.

There has been some relief from taxes for property buyers in Scotland and Wales during the stamp duty holiday.  The stamp duty holiday will end on 31st March.

Property group Knight Frank says the extension of the stamp duty holiday provides reprieve to people buying and selling houses. They said that by October, a three-month taper would make any rock-edge in June feel less steep.

This expansion brings significant relief for people stuck in the middle of the buying and selling process. It is also expected to give a kick start to the property market. There is a good chance that passion to buy and sell will increase, especially as we are heading into the major spring months.

This expansion brings significant relief for people stuck in the middle of the buying and selling process.
A finance expert Rachel Springall said that the extension gives borrowers a better chance of creating deadlines. It could hold mortgagors who were going to opt-out of the home purchase process.

What is stamp duty?

Stamp Duty Land Tax is tax paid on the buying or selling of any property in the UK or Northern Ireland. Last year, the government temporarily increased the amount on which tax is paid for the sale of the property to £ 500,000.


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