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When Does the Stamp Duty Holiday in England and Northern Ireland End?

There has been much in the news about the stamp duty holiday, and after almost a year, the end of this scheme is in sight. Stamp duty is, of course, the tax payable under normal circumstances, when you buy a home in England or Wales. Although there are some exemptions under the standard rules, every home purchase over the value of £125,000 attracts the tax. Stamp duty is payable on a sliding scale, ranging from 2% to 12%, for all balances above the exemption threshold.

It was following the massive economic downturn caused by the coronavirus pandemic, that the government introduced the stamp duty holiday to encourage people to continue purchasing property, and the holiday allowed stamp duty to be abolished on properties up to the value of £500,000. In fact, house prices in the UK increased 8.5% throughout 2020, and many believe this is down to the huge savings offered by the stamp duty holiday.

The scheme was originally due to end on the 31st of March 2021. However, due to the enormous demand, the government took the bold decision to extend the holiday until the 30th of June 2021.

This means that purchasers who complete the sale of their new properties up to the value of £500,000 before the 30th of June, will pay no stamp duty tax.

The government have also introduced a staggered approach. Until the 30th of September, homes up to the value of £250,000 will be exempt from stamp duty. From the 1st of October 2021, the previous rules will return, and every home over £125,000 will attract the tax.

But with June 30th just six weeks away, if you want to take advantage, you’ll need to be quick! It’s still potentially do-able if you act now.

When Is Stamp Duty Payable?

There are two milestone moments most buyers are aware of when purchasing a new home: the exchange of contracts and the property completion.

The exchange of contracts is the stage where both the buyer and seller commit to the home's sale and completion occurs later, where the property legally transfers from one owner to the next. So, it’s important to understand that the completion process must be finalised within the stamp duty holiday period, for you to benefit from the scheme. In other words, you must complete by 30th June.

How to Speed Up Your Purchase

With just six weeks until the first deadline, we are doing everything within our control to speed up your purchase!

Of course, if the process has not yet begun, you will need to be extremely quick to complete the entire sale before the end of June. Choosing a property with no chain attached is essential.

Ensuring that your mortgage in principle is secured before you place an offer will also drastically speed up the process.

What If I Miss the Stamp Duty Deadline?

The government have stressed that the stamp duty holiday will not be further extended, with the September budget expected to be much lower than those over the previous eighteen months.

Nevertheless, don’t feel tempted to settle on the wrong property simply to beat the deadline!

We appreciate that It will be hugely disappointing for buyers who are unable to complete before the stamp duty holiday ends, and as always, we will be putting you first and helping your transaction progress as smoothly as possible.

Please get in touch with us and we’ll share our expertise with you. Call the Satchells team on 01462 410394 or email us at salesadmincentre@satchells.co.uk

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