When does the Stamp Duty Holiday come to an end? Important dates as the deadline approaches
THE STAMP DUTY HOLIDAY, which was originally scheduled to end in March but was extended, is set to end soon. But when does the Stamp Duty exemption expire? Important dates to keep track of.
In England and Northern Ireland, every property buyer must pay Stamp Duty, or ‘land and buildings transaction tax’ in Scotland and Wales. The threshold at which buyers must pay this tax was raised in an effort to get the market going as the UK recovers from the coronavirus outbreak. This, however, was merely a stopgap remedy.
Chancellor Rishi Sunak has being urged to abolish Stamp Duty entirely, regardless of how soon the holiday will end.
The amount of Stamp Duty that must be paid was raised from £125,000 to £500,000 in July 2020.
While the holiday has been extended previously, it is not expected to be extended again, giving purchasers a limited amount of time to save money on their home purchase.
So, when does the Stamp Duty-Free Period end? For important dates, continue reading.
Buyers have benefited from an extra three months of the Stamp Duty break, which was originally set to terminate in March 2021.
The plan will be phased out in England and Northern Ireland starting June 30 and will be completely phased out on September 30.
This means that buyers who want to take advantage of the Stamp Duty Holiday must complete their transaction by September 30.
Unfortunately, if you exchange on or before September 30 but finalize after that date, the deadline will be missed and you will be charged the standard rate of Stamp Duty.
Dates to remember:
Rates are expected to return to normal on October 1, 2021:
While the housing market has clearly improved, the Stamp Duty holiday has caused the average mortgage deposit in some areas of the UK to rise by £11,000.
Keller Williams UK looked at the cost of buying a home based on the average mortgage deposit of 15% of the property value in the present market versus June of last year, when the stamp duty holiday was initially introduced.
The current UK average house price of £234,474 necessitates a 15% mortgage deposit of £38,461 for homeowners.
“Brinkwire Summary News” reports that this is £3,249 more than the average 15% deposit of £25,212 previous to the stamp duty holiday’s introduction.