S Is For Stamp Duty
03/03/2021 12:00 AM 0
S is for Sunak....and Stamp Duty
Happy Budget Day! It’s been a big day for Rishi and an even bigger day for the economy, and stamp duty took a starring role.
So, what even is stamp duty? Stamp Duty Land Tax (SDLT) is a tax on property or land bought in England or N.Ireland. SDLT only applies to properties over a certain value and the amount you pay depends on when you purchased the property and what you paid for it. There are heaps of useful online tools to help you do the sums.
Before last year, stamp duty was applicable on anything over £125,000. A stamp duty holiday was introduced in 2020 to mitigate the impact of the coronavirus pandemic on the housing market. In effect, the ‘holiday’ cut the rate of stamp duty to zero percent for all properties under £500k and was due to end on 31st March 2021.
Today, the Chancellor announced that the stamp duty holiday would be extended by 3 months, with a new deadline of 30th June. This move provides welcome relief to many house buyers, who were racing to complete their purchases before the original end of March deadline, which could have left them with a hefty tax bill (up to £15k in some cases).
The current rules can be broken down like this:
Up to £500,000 - no stamp duty
£500,001 to £925,000 – 5%
£925,001 to £1.5m – 10%
Above £1.5m – 12%
Whether the stamp duty holiday is actually a good thing is much debated. Positively, it has jump started the housing market, particularly at the start of the pandemic when house sales came to a total standstill. However, UK house prices have now hit a record high which aren’t in line with growth in wages, making property less affordable for many.
The extension means many buyers no longer face a cliff-edge with their transactions, and hopefully will keep the market robust during such economically trying times.

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