Budget 2021: Stamp Duty Holiday Extended & Mortgage Guarantee Scheme
Earlier today the Chancellor announced an extension to the Stamp Duty holiday and a ‘Mortgage Guarantee’ scheme….
Chancellor Rishi Sunak today announced that the stamp duty land tax ‘holiday’ will be extended by another three months until 30th June 2021.
Stamp Duty Holiday Extension
Last summer, the Government temporarily increased the amount at which the tax is paid to £500,000, for property sales. To ‘smooth the transition back to normal’, the nil rate band will be £250,000 – double its standard level – until the end of September. The government will return to the usual level of £125,000 from 1 October.
The extension means anyone completing a purchase on a main residence costing up to £500,000 before 30 June 2021 will not pay any stamp duty. More expensive properties would only be taxed on their value above that amount.
In a BBC article, Tom Bill, Head of UK Residential Search at property group Knight Frank says;
“Hopefully the extension will provide relief for people buying and selling homes at this time. The extension is fair because completion dates for buyers and sellers have been jeopardised through no fault of their own,”
“The conveyancing system has simply been overwhelmed by the volume of transactions since the market re-opened last May. The three-month taper until October will make any cliff-edge in June feel less steep but we would still expect a surge in activity to capitalise on the full saving”
What Does This Mean For People Who Have Recently Had a Conveyancing Quote From us?
If you have recently asked us for a conveyancing quote, the stamp duty was included and is clearly itemised. If the property you asked us to quote on is under £500,000 and is likely to be completed by 30 June 2021 then the stamp duty becomes £nil.
If you would like us to provide a new quotation, please contact Kate Offler on 01332 364436 and she will be happy to help.
Mortgage Guarantee Scheme
In addition to the Stamp Duty holiday, Chancellor Rishi Sunak, announced a ‘mortgage guarantee’ which will help those people who find the cost of a deposit a significant barrier to getting on the property ladder.
Appealing to a new generation who dream of owning their own home, the government will offer incentives to lenders from next month, bringing back 95% mortgages which have “virtually disappeared” during the pandemic, the Treasury says.
How Timms Can Help
If you are now considering moving home and would like a conveyancing quote please contact us on 01332 364436, alternatively you can visit our website at https://www.timms-law.com/conveyancing/ for a free no obligation competitive quotation.
If you have any questions or queries our team is here to help.
Lisa Collett
March 2021