The stamp duty holiday has been extended by six months until the end of September. This avoids a ‘cliff-edge’ scenario that some property commentators were warning about. It also takes some heat out of the market as it was clear with the back log of transactions, many would not complete were the original deadline not extended.
The six-month extension includes a tapering of support, gradually lowering the nil-rate band from June 2021.
The extension applies to all transactions in England and Northern Ireland, meaning buy-to-let investors will continue to benefit from the tax savings.
The deadline for buyers to take advantage of the higher £500,000 nil-rate band has been extended by three months. This means that buyers in England and Northern Ireland can save up to £15,000 in tax if they can complete their sales by June 30.
After this date, the nil-rate band will drop to £250,000 until September 30. This means the maximum tax savings will fall to £2,500 during this period. From October 1, the nil-rate band will fall back to its original level of £125,000.