Stamp Duty Holiday
Posted on Saturday, 3 April, 2021
The government’s annual take from stamp duty is approximately £12bn, according to the latest figures released by HMRC. That’s roughly equivalent to 2% of the Treasury’s total tax take.
Last year the government temporarily increased the amount at which stamp duty is paid to £500,000, for property sales in England and Northern Ireland.
However, the tax saving was due to end on 31 March, but Mr Sunak announced in the Budget on the 3rd March that the holiday will now end on 30 June.
After June, the starting rate of stamp duty will be £250,000 until the end of September. Stamp duty will then return to the usual level of £125,000 The move was aimed at helping buyers who might have taken a financial hit because of Covid. It could save them as much as £15,000, if they were buying a property of £500,000 or more.
The stamp duty holiday’s intended purpose was to boost the property market hit by lockdown, which had initially seen house prices fall for four months in a row. There is little doubt that the stamp duty saving combines with people wanting more space has increased demand for property and particularly houses.