Rishi Sunak used the Budget to extend the stamp duty holiday until the end of June. The tax break, which the Chancellor introduced in July 2020, was brought in to help boost the housing market, which had been suffering due to the pandemic.
It had been due to end on 31 March, leaving many homebuyers rushing to try and complete their purchases. But the deadline will now be pushed back to 31 June.
Under the current scheme, buyers do not have to pay stamp duty on the value of a property up to £500,000, rather than £125,000. It allows people to save up to £15,000 in taxes when purchasing a home. After 31 June, the value of a property buyers do not have to pay stamp duty on will be reduced to £250,000 – still double the usual rate. It will return to its normal £125,000 threshold from 1 October.
Buy-to-let landlords and second home buyers are eligible for the tax cut. However, they still have to pay the additional 3% rate that has always been in place for second home buyers. You will not have to pay the 3% tax if the property you are buying is replacing your main residence and that has already been sold. If you are yet to sell your main property when you purchase the replacement you will have to pay the additional rate, but you can apply for a refund if you sell your original home within 36 months.
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