Rumoured stamp duty extension

Rishi Sunak is preparing to extend the stamp duty holiday by three months until the end of June, according to reports ..

Following pressure to extend the tax relief to allow buyers to complete their transactions, Chancellor Rishi Sunak is expected to announce a new deadline in his Budget statement on March 3.

The current stamp duty holiday introduced by Sunak back in July last year in order to get the housing market back on its feet entitles homebuyers a tax exemption on the first £500,000 of any residential property in England and Northern Ireland, saving them up to £15,000.

The holiday scheduled to end on 31 March with normal rates of stamp duty (or equivalent) applying from 1 April is expected to be extended to ensure those currently awaiting completion the benefit of a tax break. Delays in completion have arisen primarily due to continued lockdowns and a backlog in conveyancing.

According to property portal Rightmove there are an estimated 628,000 sales in total still currently in the legal process across Great Britain, including those that were agreed last year and unless there is an extension 100,000 people could face an unexpected stamp duty bill amid delays in the home buying and selling process due to social distancing measures, illness and home-schooling.

If an extension is announced Rightmove predict an additional 300,000 property transactions, saving buyers a collective £1.75 billion.

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