Chancellor extends stamp duty land tax cut
Chancellor Rishi Sunak used the 2021 Budget to confirm the extension of the stamp duty land tax (SDLT) holiday.
The government will extend the temporary increase to the stamp duty land tax nil-rate band for residential property in England and Northern Ireland to 30 June 2021.
From 1 July 2021 until 30 September 2021, the nil-rate band will be £250,000. The nil-rate band will return to the standard amount of £125,000 from 1 October 2021.
Following the Chancellor’s announcement, the Welsh Finance Minister has confirmed that the Land Transaction Tax (LTT) temporary reduction period will be extended by a further three months so that it will end on 30 June 2021.
Mr Sunak also announced a new mortgage guarantee scheme to enable homebuyers to secure a mortgage up to £600,000 with a 5% deposit.
This scheme will provide a guarantee to lenders across the UK who offer mortgages to people with a deposit of just 5% on homes with a value of up to £600,000. Under the scheme, all buyers will have the opportunity to fix their initial mortgage rate for at least five years, should they wish to.
David Postings, Chief Executive of UK Finance, said: “We welcome the certainty an extension to the stamp duty holiday and a phased approach to its ending brings for buyers and sellers. This will help prevent a cliff edge, reduce the risk of house sales collapsing and will prove beneficial for all parties involved in the housing market.”
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