The Stamp Duty Land Tax Holiday has been extended to 30th June 2021. This is an extension from the previous deadline of 31st March 2021. From 30th June 2021, the threshold will drop to £250,000 until 30th September 2021. Stamp duty thresholds will return back to normal levels from 1st October 2021.
This means that if you’re currently stuck in a housing chain, you have an additional three months to complete on your purchase and take advantage of the stamp duty holiday before 30th June 2021.
These changes will only apply in England and Northern Ireland.
Why has the stamp duty holiday been extended?
The extension comes as a result of industry experts campaigning to extend the stamp duty holiday for those who are currently buying a home that won’t complete their transactions by the 31st March 2021.
The intention of extending the deadline is to allow those already in a housing chain to complete in time. Many current homebuyers have been worried over recent weeks whether their transaction would complete before the previous deadline, which could be the difference of thousands of pounds were they to miss it.
What does this mean for me?
If you are currently in a housing chain and weren’t sure whether you’d complete in time, then you can be rest assured you’ve now got another three months to get everything sorted.
If you're not currently in the process of completing on a house purchase, then you've unfortunately missed out on the main stamp duty tax break due to end 30th June 2021. However, you may still be able to complete on a home purchase before 30th September 2021, where the stamp duty threshold of £125,000 has now been doubled to £250,000.
How much stamp duty will I have to pay?
How much stamp duty you’ll pay will now depend on how far along you are in your home buying journey. If you’re already in the process of buying a home, then you’ll remain eligible for the stamp duty holiday until the extended deadline of 30th June 2021. This means you won’t pay stamp duty on properties valued up to £500,000.
From 30th June 2021 to 30th September 2021, the nil rate band of £125,000 has been doubled to £250,000, when it will then return back to normal levels. You also won't pay stamp duty on homes valued up to £250,000 if you complete on a home in this time frame.
If you complete on a home after 30th September 2021, you’ll unfortunately no longer be eligible for the stamp duty tax break. You’ll have to pay stamp duty on any properties above £125,000. You’ll be exempt to up to £300,000, however, if you’re a first time buyer.
What to do next
If you’re currently completing on your new home, make sure to get everything sorted as soon as you can. Here are some important tips to speed things up:
- Get your agreement in principle from your mortgage adviser
- Instruct a solicitor to do your property searches
- Raise any pre-contract queries in advance
If you’ve missed out and don’t know where to go next, we’re always here to help. Our expert mortgage advisers will be able to advise you on next steps and help get you back on track.
