Stamp Duty Holiday Extension Announced - Will Scotland follow with an announcement for our Land and Buildings Transaction Tax?
The government is preparing to extend the stamp duty holiday in the UK in an attempt to maintain momentum in the housing market, the new extension will last for three months - until the end of June – according to a report from the Times.
The holiday, first announced by the chancellor Rishi Sunak last July, exempts buyers from the levy imposed on the purchase of primary residences up to a cost of ￡500,000.
When the extension ends, the threshold will revert to the original ￡125,000 before the tax has to be paid.
News of the extension comes after a fierce campaign by economists, estate and letting agents and commentators.
There has been speculation on whether this announcement will impact the housing market positively, or whether it will cause the same challenges down the line.
I personally see this as a good thing, and truly hope this announcement is followed by another from our Scottish Parliament. It will release a bit of pressure on the conveyancing system and stop sales falling through unnecessarily. A number of my contacts in the legal environment will be under increased pressure to conclude the sale before the end of March with the looming deadline which once passed, will result in either substantial increased costs for buyers and sellers alike or result in sales falling through.
It is true to say however, that the extension is also just moving the goal posts. It will create a new cliff-edge further down the line, - but for now, it would definitely be a positive development, should Scotland follow suit.
According to Estate Agent Today, the extension is “precisely the same as advocated by the Building Societies Association”.
And that “the BSA believes that a tapered end would allow any house purchase where the mortgage approval has been granted by the end of March, an additional three months to complete while still benefiting from the rate reduction.”
Full details of the Chancellor’s plans are expected to be announced when he releases the government’s official budget on Wednesday 3rd March.
I will update you as I find out more.