Stamp duty holiday deadline extended in Spring Budget

Stamp duty holiday deadline EXTENDED in Spring Budget

Waterfords Estate Agents in Camberley, Chobham, Fleet and Yateley bring you the very latest on the stamp duty announcement in the Spring Budget.

On 3rd March 2021, the government announced that the temporary stamp duty holiday in England and Northern Ireland has been extended until the end of June 2021. The news will come as a relief to those buyers and sellers who have been desperately trying to get their sale completed in time to meet the previous deadline of 31st March.
 

What is the temporary stamp duty holiday?

The stamp duty holiday was introduced to help buyers who might have taken a financial hit because of Covid. It was also intended to boost the property market amid lockdown and save jobs within the property sector.

The extension means anyone completing a purchase on a main residence costing up to £500,000 before 30 June will not pay any stamp duty. More expensive properties would only be taxed on their value above that amount.

You now have until 30th June to complete on the purchase to make the stamp duty saving.

Then, to smooth the transition back to normal, the nil rate band will be £250,000, double its standard level, until the end of September.

It will return to the usual threshold of £125,000 on 1st October.
 

How much stamp duty will I pay if I complete my purchase by 30 June?

If you purchase a residential property between 8 July 2020 to 30 June 2021, you only start to pay stamp duty on the amount that you pay for the property above £500,000. These rates apply whether you are buying your first home or have owned property before.

For the purchase of a main residence by 30 June 2021:

Between £00,001 and £500,000: 0%

Between £500,001 and £925,000: 5%

Between £925,001 and £1.5 million: 10%

Over £1.5 million: 12%

How much stamp duty will I pay if I complete my purchase between 01 July and 30 September?


For the purchase of a main residence between 01 July and 30 September:

Between £00,001 and £250,000: 0%

Between £250,001 and £925,000: 5%

Between £925,001 and £1.5 million: 10%

Over £1.5 million: 12%

What will stamp duty be from 01 October 2021?
 

For the purchase of a main residence from 01 October:

Between £00,001 and £125,000: 0%

Between £125,001 and £250,000: 2%

Between £250,001 and £925,000: 5%

Between £925,001 and £1.5 million: 10%

Over £1.5 million: 12%

Huge relief for buyers

The extension of the stamp duty holiday will provide relief for people buying and selling homes. The extension is deserved because completion dates for buyers and sellers have been jeopardised through no fault of their own.

It is also likely to kickstart the property market as the extension boosts enthusiasm for those that were thinking of buying or selling their homes. Spring is traditionally the busiest time of the year for the property market so a few bumper months of activity throughout Camberley, Chobham, Fleet and Yateley is highly likely!
 

Are there delays in the home-moving process at the moment?

When the announcement was first made in July 2020, Rightmove recorded their busiest ever day, as people rushed to see if they could move home and make use of the savings, leading to a huge increase in the usual number of sales that would be going through the legal process.

Rightmove estimate that there are currently 628,000 sales going through, and this massive number, coupled with the challenges of conveyancers, solicitors and councils working from home, has led to delays in the home-buying process.

The three-month taper from June to October will also ease pressure on the conveyancing and sales process so hopefully this cliff edge feeling of having to meet the deadline will be eased somewhat.
 

What does the stamp duty holiday extension mean for you?

There are many positives to the stamp duty holiday extension. Firstly, if you are currently in the process of buying a property then there is every chance that you will make the June deadline and the associated savings on your purchase. So you can breathe a sigh of relief!

Secondly, if you were thinking of buying a property but thought you would miss the deadline so are holding off on your decision to move home, now is a fantastic time to start searching for your dream home in Camberley, Chobham, Fleet and Yateley.


How does this benefit landlords and investors? 

Although this announcement has been designed to promote sales in the private sales market, the stamp duty holiday has a distinct benefit for those buying a second home or a buy-to-let property. 

Buyers of second homes and buy to let properties will have to continue to pay the 3% surcharge at all levels of purchases including below £500,000. Whilst the surcharge is still attached to stamp duty rates, the announcement by Chancellor dramatically makes it cheaper for investors to increase their property portfolio, especially on mid-level properties. 
 

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