Stamp Duty Holiday will continue with No Stamp Duty on purchases up to £250,000 from 30/6 to 30/9
The current Stamp Duty Holiday will come to an end on the 30 June. After this date, until the end of September, there will be a staggered return to previous Stamp Duty rates. Meaning buyers won't have to pay Stamp Duty on the first £250,000 of the purchase price.
The initial threshold is where SDLT (Stamp Duty Land Tax) starts to apply. If you purchase a property for under £500,000 before the June deadline, there is no SDLT to pay.
On purchases over the £500,000 threshold, buyers will pay a 5% SDLT on the portion from £500,001 to £925,000, 10% on the portion from £925,001 to £1.5 million, and 12% on any portion over £1.5 million.
Landlords and people buying second homes can also benefit from the holiday, but still continue to pay the 3% Stamp Duty surcharge, which applies to additional properties.
On property purchases from 1 July to 30 September 2021, the SDLT threshold on residential properties will be £250,000. From 1 October, and the SDLT threshold will be £125,000 for residential properties.
Due to a surge in demand for property purchases following the original announcement, many lenders faced a huge backlog of mortgage applications. This led to a large number of buyers being unlikely to make the March deadline. The extension should allow time for buyers to complete their purchases and benefit from the Stamp Duty holiday they had expected to take advantage of when they began their purchase.