MHA | Budget 2021: Stamp duty holiday extension

Budget 2021: Stamp duty holiday extension

Posted on: March 3rd 2021 · read

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

Visit our Budget 2021 hub for our latest commentary and to pre-order our exclusive Budget Summary and Tax Card.

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