Stamp Duty Relief has been a benefit to many, over the past few months.  On 3 March 2021, Chancellor Rishi Sunak announced that the Stamp Duty Relief will be extended until 30 June 2021.

The reason for this decision, I think, is mainly due to the pressure to extend this because of possible delays in completion of properties.  Due to the lockdown, many things are being delayed.

The Budget

In the 2021 budget, Sunak confirmed that buyers now have until the end of June to complete sales in England and Northern Ireland.  From the end of June until the end of September 2021, the nil-rate band will reduce from £500,000 to £250,000.

A relief for many

So many homebuyers haver been worried they may not have been able to complete in time.  This would mean they didn’t benefit from this amazing opportunity.

The initial reason for the relief of stamp duty was to ensure the property market didn’t take a nose dive.  The idea was to encourage people moving house, to ensure the property market stayed at a high.  I believe, it has certainly had this effect.

According to Zoopla, in the last quarter of 2020, there were over 140,000 more people in the process of purchasing a property than there were in the previous year, with an estimated 418,000 home sales progressing to completion. 

I don’t know about you, but I have certainly noticed, recently, how quickly houses seem to be for sale one minute and then sold.

The plan of extending the Stamp Duty Relief until the end of June and phasing it out until September should help avoid a sudden downturn in prices on properties too.

How can you benefit?

It has certainly been an amazing opportunity and if you have been able to take advantage of this, I am sure you have really benefited.  But if you haven’t yet, let me explain a little more about how it works…

If you purchase a property for under £500,000 before the June deadline, there is no Stamp Duty to pay. 

On purchases over the £500,000 threshold, buyers will pay a 5% Stamp Duty 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.