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The Chancellor has announced the extension of the Stamp Duty Land Tax holiday (SDLT) for purchases up to £500,000 until the 30th June 2021. This is welcome news.
From 8th July 2020, a nil rate band for SDLT for residential property transactions has been in place for the following scenarios:
The extension of the SDLT holiday until the end of June 2021 will provide a considerable degree of relief for purchasers who wished to complete before the original deadline of 31 March 2021.
However, from 1st July 2021 to 30th September 2021, purchasers should be aware that the nil rate band for SDLT will be reduced to £250,000 and following this, the original nil rate band of £125,000 will be reinstated from 1st October 2021.
The Chancellor has also announced help for first-time buyers in the form of a “government guarantee” to Lenders for mortgages where a first-time buyer is providing a 5% deposit. The Chancellor said that Lenders such as a Lloyds, NatWest, Santander, Barclays and HSBC are already on board, and it is hoped that more will follow. We await details of the scheme with interest.
We are hopeful that these initiatives will help to stabilize a buoyant residential conveyancing market and lead to sustainable growth.
We recommend that you seek advice from us at an early stage when buying or selling residential property so that we can help you make your next move as smoothly as possible.
For further information on selling or buying a residential property, please contact our residential conveyancing team: