On 3rd March 2021, Chancellor Rishi Sunak had announced a three-month extension to the stamp duty holiday which extends to 30th June.
This tax relief was due to end on 31st March, but this extension enables more homebuyers to complete their new purchases by June.
What are the benefits of this extension?
Savings on tax
If you’re located in England or Northern Ireland and your home move will be completed by 30th June, you will be able to see the largest cuts in property purchase tax on properties valued up to £500,000. The stamp duty holiday ends at the end of this month in Scotland and those that are in Wales will be able to see tax cuts on properties valued up to £250,000.
According to data from Zoopla, their data indicates that there will be at least 740,000 homebuyers who will be benefiting from the stamp duty holiday by the time this tax relief ends in the UK.
Completing your purchase
Although there isn’t much time left for those in Scotland to take advantage of the tax relief, for the rest that is still in the process of moving home, this extension will provide more time for homeowners to complete their property purchases. Had there not been an extension, many purchase deals could have fallen through due to homeowners potentially not having enough funds to cover the extra tax.
The biggest savings can be seen in England and Northern Ireland where buyers spending more than £500,000 or more on a new home or buy to let investment, could see savings of up to the maximum in tax of £15,000.
Earlier predictions about how the pandemic will cause a reduction of property prices on the market have been proven wrong. The stamp duty holiday has led to greater demand and driving up house prices. According to data from the Land Registry, there is an 8.5% year-on-year increase in December.
About Stuart Mosley
Stuart Mosley (CeFA, CeMap, CLTM) founded SJ Financial Solutions in June 2005 having spent 12 years with big corporates such as Halifax and Santander. He felt the personal touch and straight speaking was missing from financial and mortgage advice services and set up SJ Financial Solutions to change this.
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