The Chancellor has announced that the stamp duty holiday has been extended to 30th June 2021 from 31st March 2021.
The stamp duty holiday extension means that no stamp duty is payable on properties up to a value of £500,000.
A problem facing the Chancellor was that a simple extension would have simply pushed the current issues out from March to June, so to assist in smoothing the transition back to the pre-COV-ID rates the nil rate band on which no duty is payable has been increased to £250,000 until the end of September. It will return to £125,000 on 1st October 2021.
How much stamp duty will you pay.
If the property purchased is your main home and the sale is completed before 30 June – you won’t pay any stamp duty at all if it costs £500,000 or less.
The next portion of the property’s price (£500,001 to £925,000) will be taxed at 5%, and the £575,000 after that (£925,001 to £1.5m) at 10%.
The remaining amount (over £1.5m) will be taxed at 12%.
Landlords and second-home buyers are also eligible for the tax cut, but will still have to pay the additional 3% of stamp duty they were charged under the previous rules.