Stamp Duty Holiday: what does the extension mean?

What does this mean for me?

If you are currently in a housing chain and weren’t sure whether you’d complete in time, then you can be rest assured you’ve now got another three months to get everything sorted.

If you're not currently in the process of completing on a house purchase, then you've unfortunately missed out on the main stamp duty tax break due to end 30th June 2021. However, you may still be able to complete on a home purchase before 30th September 2021, where the stamp duty threshold of £125,000 has now been doubled to £250,000.

How much stamp duty will I have to pay?

How much stamp duty you’ll pay will now depend on how far along you are in your home buying journey. If you’re already in the process of buying a home, then you’ll remain eligible for the stamp duty holiday until the extended deadline of 30th June 2021. This means you won’t pay stamp duty on properties valued up to £500,000.

From 30th June 2021 to 30th September 2021, the nil rate band of £125,000 has been doubled to £250,000, when it will then return back to normal levels. You also won't pay stamp duty on homes valued up to £250,000 if you complete on a home in this time frame.

If you complete on a home after 30th September 2021, you’ll unfortunately no longer be eligible for the stamp duty tax break. You’ll have to pay stamp duty on any properties above £125,000. You’ll be exempt to up to £300,000, however, if you’re a first time buyer.

What to do next

If you’re currently completing on your new home, make sure to get everything sorted as soon as you can. Here are some important tips to speed things up:

• Get your agreement in principle from your mortgage adviser
• Instruct a solicitor to do your property searches
• Raise any pre-contract queries in advance

If you’ve missed out and don’t know where to go next, we’re always here to help. Our expert mortgage advisers will be able to advise you on next steps and help get you back on track.