Stamp Duty & Land Tax

As part of his 2021 Budget, Chancellor Rishi Sunak announced that the stamp duty holiday will be extended for a further three months until the end of June. For those looking to purchase a property in the near future, this provides much-needed reassurance and an incentive to push ahead with their purchase. If you have property based business then this may well have led to a boom in activity but you need to be prepared for the possible implications when the special arrangement comes to end soon.

Stamp duty holiday extension: the details

Stamp duty land tax (SDLT) is a tax on the purchase of property or land in England and Northern Ireland.

Last year, many buyers took a financial hit because of the coronavirus pandemic and began reconsidering their options. In response, the government announced it would temporarily increase the nil-rate band (the amount at which tax becomes payable) to £500,000 until the end of March. This has now been extended to the end of June. After that, it will reduce to £250,000 until the end of September, when it returns the standard rate of £125,000.

How does this affect you?

The stamp duty holiday has boosted the property market as intended, but this has created delays in the purchase process. Through no fault of their own, many buyers have found themselves stuck, unsure whether their purchase would be completed in time to qualify for the stamp duty holiday. The extension has relieved pressure on these buyers and encouraged them to push ahead with their purchases.

For those buyers who don’t meet the initial deadline, the staggered return to the standard stamp duty rate ensures they won’t run off a cliff-edge at the end of June. Providing they complete their purchase before the end of September, they still stand to make a significant saving.

For those in the property industry they need to clearly communicate this change of rates to their customers so that they are not put off by the process and still continue with the sale or purchase.

Professional Property Accountants

MCC Accountants works with a wide range of property businesses including landlords and investors and can advise you on how to best manage the changes in government rates and legislation as they are changed over time.

Please contact our Salford or Cheadle office and one of the team will be happy to answer any questions you may have.

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