Stamp Duty holiday extended until the end of June 2021

Chancellor Rishi Sunak has today announced an extension to the Stamp Duty Holiday, which was originally announced in July 2020.  The amendments formed part of the support from the Government in response to the impact of the coronavirus pandemic.  The holiday was originally due to end on 31^st March 2021, however this has now been extended until the end of June 2021, with a phased return following that date.  Sarah Brooks, Partner and Head of our Residential Conveyancing department, explains more about the change to SDLT and what this could mean for the future of the property market.

The change to Stamp Duty

Up until the Chancellor’s announcement in the House of Commons last July, SDLT was payable on all properties sold for £125,000 or more.  First time buyers were not required to pay SDLT on properties sold for up to £300,000.  If the property is sold for over £300,000, they paid 5% on any portion between £300,000 and £500,000.

In England and Wales, the rate for payment of SDLT has been as follows:

• 2% payable on properties sold between £125,001 - £250,000
• 5% payable on properties sold between £250,001 - £925,000
• 10% on properties sold between £925,001 - £1.5million
• 12% on properties sold for above £1.5million.

Under the current Stamp Duty holiday, no SDLT is payable for properties sold under £500,000.  For anything above that figure, the following rates will apply for first time buyers as well as those who have owned property before:

• 5% on properties sold between £500,001 - £925,000
• 10% on properties sold between £925,001 - £1.5million
• 12% on properties sold for above £1.5million.

From 1^st July 2021 until 30^th September 2021, no SDLT will be payable for properties sold under £250,000 and from 1^st October 2021, the normal regime as detailed above will return.

Stamp Duty payable on additional properties

For those who are buying additional property on top of their main residence, the 3% surcharge will also change as follows from today until 31st March 2021:

• 3% on properties up to £500,000
• 8% on properties between £500,001 - £925,000
• 13% on properties between £925,001 - £1.5million
• 15% on properties above £1.5million

“This was a significant change to SDLT, and was a boost for the property market in light of the job cuts and other financial struggles people have endured in light of the coronavirus pandemic,” explains Sarah.  “Those who were considering moving home were encouraged to do so to take advantage of the SDLT holiday, and nearly 90% of those who moved were not be required to pay SDLT, saving potentially thousands of pounds. 

“The fact that the holiday has been extended is a welcome support from the Government as our teams work towards ensuring as many people can move as possible within the deadline.” 

If you are currently using our Conveyancing department for your move and have questions as to how this will impact you, we will be in touch in due course with further detail as and when we receive it.  Alternatively, for more information as to how we can assist you with buying or selling your home, you can contact our teams today on the following details:

Fareham: 01329 288121
Southampton: 023 8063 9311
Portsmouth:  023 9275 3575
Chandler’s Ford: 023 8071 7467
Waterlooville: 023 9277 6569
Email: conveyancingquote@warnergoodman.co.uk

ENDS

This is for information purposes only and is no substitute for, and should not be interpreted as, legal advice.  All content was correct at the time of publishing and we cannot be held responsible for any changes that may invalidate this article.