06 June 2021
Here we go again… And, no, it’s not Groundhog Day though you’d be forgiven for thinking it was! Here we are once more talking about the fast-approaching, end to the Stamp Duty Holiday.
When Rishi Sunak announced the government’s plans for the housing market and an extension of the hugely popular Stamp Duty Holiday back in March’s Budget , there was a fresh surge of buyers and sellers hitting the market and a sense of relief for thousands of those already in the process.
Since then, the market has remained extremely active with lots of us racing to complete before the end of this month, so not to miss out on the vast tax savings.
The 100% nil rate Stamp Duty Holiday comes to the end of its extension on the 30th of June and, as it stands, as long as you are able to complete on the transaction before the end of June, you won’t have to pay any Stamp Duty tax on property purchases up to the value of £500,000.
As in March, it again looks likely that thousands of sales will not be ready to complete by the end of the month as conveyancers, solicitors and surveyors are set for another busy month. All is not lost though, as “to smooth the transition back to normal”, if you are in the middle of a purchase and miss the 30th June deadline, the nil rate band will be double its usual amount until the end of September.
There are currently a number of petitions circling to either extend or amend the holiday, or abolish the tax altogether going forward. It really is a mixed bag of emotions with many arguments being made on both sides, though one petition did reach 10,000 signatures last week which means the government will now have to respond to it.
Chris Holland’s petition is in favour of the Stamp Duty Holiday to be triggered upon the exchange of contracts, rather than completion and, whilst we don’t expect the government to make any further extensions or changes to the Stamp Duty Holiday, we are interested to see how Rishi responds to the growing calls for even more support for the housing market.
We will be working hard all month with our mortgage advisers and conveyancers to help those already in the process of purchasing to complete and move forward. If you have any questions or worries regarding the Stamp Duty holiday, meeting the deadline or just need a little advice, don’t hesitate to get in touch with us.