As expected, Chancellor Rishi Sunak has confirmed in his Spring Budget today that there will be an extension to the Stamp Duty Land Tax (SDLT) holiday.
Promising to, “do whatever it takes” to get the economy moving again and support the nation, the Chancellor has announced the tax saving – due to have ended on 31st March – will now be extended until the end of June.
The extension will be a huge relief to the estimated 100,000 ongoing purchases which were at risk of not being completed on time and the thousands of buyers who feared they would miss the deadline leading to a collapse in transactions.
Announced last summer amid calls to help buyers and prop up the housing market during the pandemic, the Stamp Duty Land Tax (SDLT) holiday means that residential property buyers don’t have to pay stamp duty on homes of less than £500,000. The tax holiday further discounts the amount payable on higher purchases, so a property costing between £500,001 and £925,000 will be taxed at 5%; £925,001 and£1.5m at 10%, and over £1.5m at 12%.
To gently ease things back to the pre-Covid levels, from the end of June to the end of September, the threshold at which it will begin to be paid will be raised to £250,000. Thereafter, from 1st October stamp duty will revert to £125,000.
Landlords and second-home buyers are also eligible for the tax cut but they will still have to pay the additional 3% of stamp duty they were charged under the previous rules. So if you are buying as an investment (buy-to-let) or a second home the additional 3% stamp duty tax is still payable on the full purchase price.
Here at VESPER we welcome the Chancellor’s announcement and to add to it we are offering some further amazing savings of our own!
With stunning new-build properties in Manchester from only £160,000 (The Press; St Georges Gardens; Local Crescent; Deansgate Sqaure; Castle Wharf), and in London from £600,000, (Wardian; Greenwich Peninsula), VESPER will cover the overseas tax (payable by some buyers from 2nd April) as well as a give you a 2-year letting & property management service for free!
And that’s not all.
All new purchases in the Deansgate Square and Castle Wharf developments during 2021 (until stock lasts) come with a stylish and contemporary complimentary furniture pack from David Philips Interiors.
So whether this is a first home, a move, or a buy-to-let investment property, call VESPER today to talk to one of our team – we’re here to help!