The UK Chancellor has confirmed in his Budget today that the £500,000 threshold for stamp duty will remain in place until 30 June.
Under the temporary rules, homebuyers in England and Northern Ireland can continue to benefit from a higher threshold for stamp duty on house purchases. The tax break can see some homebuyers save up to £15,000 on a property purchase.
Stamp duty is a tax you pay when you buy a property, charged as a percentage of the purchase price.
The lower nil-rate band on stamp duty was initially implemented in July 2020 to boost house buying activity following the first coronavirus lockdown.
Under the revised threshold, demand has been so high that significant delays have resulted in the house buying process. The extension has been implemented to avoid hundreds of thousands of moves falling through due to the original deadline of 31 March 2021.
The lower nil rate band is now scheduled to apply until 30 June 2021. Between 1 July and 30 September, it will be reduced to £250,000, and then from 1 October, the previous threshold of £125,000 for home movers will be reinstated.
Author
Gill Laing is a qualified Legal Researcher & Analyst with niche specialisms in Law, Tax, Human Resources, Immigration & Employment Law.
Gill is a Multiple Business Owner and the Managing Director of Prof Services - a Marketing Agency for the Professional Services Sector.
