22nd December 2020
The Government currently has no plans to extend the stamp duty land tax (SDLT) holiday in England and Northern Ireland beyond next spring.
On 8 July 2020, Chancellor Rishi Sunak raised the stamp duty land tax-free threshold from £125,000 to £500,000 until 31 March 2021.
That was in response to residential property transactions falling by 50% as the UK went into lockdown in March and April 2020.
According to HMRC, transactions in October 2020 were 13.7% higher than October 2019 and 23.7% higher than September 2020.
But with the deadline looming, many buyers are caught in complex chains and run the risk of missing out on substantial SDLT savings.
The Treasury was recently asked if it had plans to support sellers who miss the deadline as a result of buyers unexpectedly pulling out.
Jesse Norman, financial secretary, said:
"The temporary relief was designed to stimulate immediate momentum in a property market, following a lockdown slump in March 2020.
"As the relief was designed to provide an immediate stimulus to the property market, the Government does not plan to extend this relief."
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