As was widely trailed Rishi Sunak, the Chancellor of the Exchequer, confirmed on Wednesday an extension to the current Stamp Duty (SDLT) holiday, which was due to expire on 31st March, writes Thom Wilkinson, Partner and member of the Property team.
Estate agents Chestertons were quick off the mark and thanks to them here are what they suggest are the main residential property take-aways from the Budget.
Anyone who buys a main home before 30th June 2021 will pay no SDLT up to £500,000. If the property is priced over £500,000 they will only be taxed on the excess amount. This equates to a saving of up to £15,000.
Anyone that buys a main home between 1st July and 30th September 2021 will pay no SDLT up to £250,000 and will only be required to pay tax on the amount over this figure. This equates to a saving of up to £2,500.
Those buying a second home or investment property will also benefit from the SDLT holiday but will still be required to pay the 3% stamp duty surcharge for second homes.
From 1st October, basic rate SDLT will revert to the pre-Covid levels.
In addition, from 1st April a 2% surcharge will be added to the SDLT rates applied to buyers from outside of the UK.
If you are thinking of selling:
We expect an increasing number of buyers to enter the market following this news, which would push up demand for properties and impact prices. Contact Chestertons to see how much your property could be worth in the current market.
If you are thinking of buying:
Competition amongst buyers for properties will increase as the Stamp Duty holiday offers a strong incentive to buy before the summer. Register your property requirements with your local estate agents to ensure you are kept up-to-date with new properties as they come onto the market.
As ever, if you would like to discuss any of the points raised in this article, please do get in contact. Thom Wilkinson is a Partner and member of the Property team and is contactable on Tel: +44 (0)20 7692 7581 or Email: thom.wilkinson@mww-llp.com
At Bishop & Sewell, we have more than 40 years’ experience in property with a particular focus on Landlord & Tenant. If you are thinking of buying a leasehold property, or if you already own a leasehold property and you have a question about obtaining a consent to alterations that you are planning please call 020 7631 4141 and ask for a member of the Property team, or email leasehold@bishopandsewell.co.uk.
The above is accurate as at 10 March 2021. The information above may be subject to change during these ever-changing times.
The content of this note should not be considered legal advice and each matter should be considered on a case by case basis.
