The government introduced the stamp duty holiday on the 8th of July 2020 to provide a boost to the property market during the pandemic.
Stamp duty is charged to buyers in England when purchasing a residential property or piece of land. The tax applies above a certain threshold, for both freehold & leasehold transactions and applies whether you are purchasing with a mortgage or with cash. The usual thresholds are as follows:
From 8th July 2020 the chancellor confirmed that there would be a temporary stamp duty cut until 31st March 2021. This meant that you would only pay stamp duty above £500,000, offering buyers a huge potential saving of up to £15,000!
For example, if you are purchasing a property that is £400,000 as a main residence, before the stamp duty holiday you would have paid £10,000, now you pay £0!
The stamp duty holiday was due to end on the 31st of March 2021. However, due to increased demand and Covid-19 lockdowns, there have been serious delays with the conveyancing process. The average house sale reportedly taking approximately 4 months at this time.
Therefore it is very likely that the government will now extend the Stamp Duty Holiday until the 30th June 2021. This is to allow those with an existing transactions adequate time to complete.
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