Chancellor Rishi Sunak announced a Stamp Duty Holiday in July 2020 in a bid to boost the property market following the first lockdown. The holiday meant no tax was owed on the first £500,000 of a property purchase in England and Northern Ireland.
Due to end on March 31 2021, the Stamp Duty holiday was then extended, and will come to an end at the end of this month.
The Government website states:
- The temporary nil rate band of £500,000 will be in place until June 30, 2021.
- From July 1 to September 30, 2021 the nil rate band will be £250,000.
- The nil rate band will return to the standard amount of £125,000 on October 1, 2021.
“This situation once again underlines the folly of the government’s refusal to shift on the June-end cut off for SDLT.”
And buyers are already backing out, with Jeremy Swan, of Jeremy Swan estate agents in Great Missenden, Buckinghamshire telling the Daily Mail: “I now have people pulling out of sales, prompting some sellers to agree to break the property chain by moving into a rented home.
“But many can’t find anywhere to live because the rental market has gone through the roof. It’s a mess.”
While Angela Hesketh, of solicitors Jackson Lees, Wirral, told the publication: “There just aren’t enough hours in the day and as we run up to the deadline, anxiety and panic are setting in and buyers are losing their tempers.”