Will the stamp duty holiday be extended? The short answer to this question is no, it will not be extended. A tax break for first-time buyers which was only introduced in October 2015 was set to expire in April 2016, but the Chancellor decided to extend it until November 2016 as part of his Autumn Statement.
Most people were expecting the stamp duty holiday to end then and there, but recent rumours suggest that the Chancellor could decide to extend it even further than that.
Stamp Duty Holiday
Since January 2013, all first-time home buyers have been exempt from Stamp Duty on properties worth up to £250,000. Many economists believe that it was a key factor in increasing housing market activity during 2013 and helping sales surge for home builders such as Taylor Wimpey LSE: TW Persimmon LSE: PSN and Barratt Developments LSE: BDEV. In March, government insiders claimed that there were no plans to extend the policy beyond its current expiry date of December 2014.
But most think it’ll probably be extended again; some suggest that number 10 could announce something before Christmas. Extending the Stamp Duty holiday would put more money in consumers’ pockets which is always good news for retailers.
Stamp Duty Rises Again
The budget announcement that impacted house-buying most was George Osborne’s decision to raise stamp duty yet again. Those buying a home will have to pay 1% more than they did in April. That’s great news for HMRC which is set to collect £500m from first-time buyers in London alone. Of course, it isn’t such good news for struggling first-time buyers across England and Wales, who need every penny they can find just to get on the ladder.
Experts Share Their Thoughts
Many industry experts believe that homeowners in England who currently own properties worth under £300,000 will benefit from an extension of the current stamp duty relief. It’s thought that many homeowners have missed out on claiming relief on their current home because they bought it early in 2016.
This time last year, people were rushing to buy a house to avoid paying any more tax when it came to buying another property however now we’ve come up to Autumn time lots of potential home buyers will have delayed their purchase until January 2017.
While many market commentators are confident that Stamp Duty Relief will be extended, there are some reports saying that these rumours are just speculation and nothing has been confirmed by HMRC or other Government bodies. What do you think? Let us know in our poll below.
What it Means for Property Buyers
In 2014, buyers were exempt from paying Stamp Duty Land Tax SDLT on properties worth less than £125,000. Many feared that this exemption would not make it into 2015 but with both main parties promising to extend it, what does that mean for property buyers in 2015? Here’s a quick rundown of everything you need to know about SDLT: whether it will be extended; how much of a saving you could make if it is; and what else has changed.
What it Means for Sellers
This is good news for sellers who’ve already put their houses on the market, or for those trying to unload homes by a certain date. If your house has been on offer for at least 28 days, you might qualify for a tax break.
There are a few conditions attached you can’t be living in it, and it must have been your main residence for at least three years before you put it up for sale. To apply, contact HMRC after you sell.
What it Means for Landlords
This week’s budget gave a huge boost to first-time buyers. To make it easier for those looking to buy their first home, stamp duty was cancelled on properties under £300,000. This relief was given not just for a few months but until December 2016.
Landlords are unlikely to benefit from any changes in stamp duty rules so you should proceed with caution before making an investment based on short-term incentives like these there will always be another government policy change around the corner!
What it Means for Estate Agents
Stamp Duty is a tax that’s usually charged when someone buys a home above a certain value. There are different brands, or thresholds, of Stamp Duty, so people buying different types of property pay different amounts.
For example, if you buy a flat for £250,000 in England or Northern Ireland (or a semi-detached house in Scotland), you’ll pay 3% Stamp Duty on that whole amount – effectively meaning you’re paying 3% tax on everything above £250k. That extra money is then used to help fund things like schools etc. see more about Stamp Duty here.