In his Budget on 3 March 2021 Rishi Sunak extended the Stamp Duty ‘holiday’ to avoid damaging the housing market.
In July 2020, the Chancellor announced a temporary increase to the Stamp Duty Land Tax nil rate band from £125,000 to £500,000 which was due to end on 31 March 2021. This so called “stamp duty holiday” has successfully fuelled activity in the housing sector and there was a real concern that the end of this relief will lead to a serious housing market downturn.
The good news is this stamp duty holiday will now be extended in its current form for three months until 30 June 2021.
- From 1 July 2021 to 30 September 2021 the temporary increase will be reduced to £250,000.
- From 1 October 2021 the nil rate band will revert back to £125,000.
- For purchases of an additional residential property or any residential purchase by a company the SDLT rate for each band is still increased by 3%.
Find out more
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