The Government’s Stamp Duty holiday has been extended in England to end on June 30th, 2021.
Up until 30 June 2021, stamp duty is paid when the purchase price exceeds £500,000.
After this date a reduced amount of SDLT will be payable until 30th September. From the 1st July 2021, the threshold will reduce to £250,000 until 30 September 2021 and then from 1 October 2021, the threshold will revert to £125,000. Different rates apply if you are purchasing a property in Wales after 30th June.
If you complete on a property before the 31st of October, you will pay a reduced amount of stamp duty tax, or possibly none at all. While the deadline is still a couple of months away, the increase in demand as a result of the stamp duty holiday combined with Covid related delays has resulted in many aspects of property transactions taking much longer than usual.
With this in mind we are recommending that all clients purchasing residential property in England and Wales, to budget for paying SDLT at the standard rates in order to ensure you are still able to afford your property purchase should you miss the deadline.