Friday, March 5th, 2021
Last summer the Chancellor of the Exchequer, Rishi Sunak, announced the first £500,000 of all property purchases will have no stamp duty liability. The initiative was introduced to provide a boost to the property market during the coronavirus pandemic. The incentive was due to expire on 31st March 2021.
On Wednesday 3rd March 2021, the Chancellor confirmed during the budget announcement the extension to the stamp duty holiday until 30 June 2021. Furthermore, there would be a staggered period before the stamp duty returned to its normal rate.
From 1 July 2021 to 30 September 2021 the first £250,000 of the purchase price will not have stamp duty liability. The next £675,000 would be taxed at 5%, and the £575,000 after taxed at 10%. The remaining amount would be taxed at 12%.
From 1 October 2021, there will be a return to its usual rate where only the first £125,000 will have nil stamp duty.
This will see a continued boost to the property market.
If you are looking to sell or buy a property please call and speak to someone in our Conveyancing team on 0207 228 0017.
Buncy Vaghela is a Solicitor in Hanne & Co’s Property Department.