Will Stamp Duty Reliefs be extended in the 2024 Spring Budget?

With the UK economy in an unpredictable state, many tax experts are suggesting that the government could look at extending Stamp Duty reliefs in the upcoming budget on 6th?March 2024.

Recent data out showed that the UK housing market has slowed, this suggests that the government will find ways to relieve the market and gain back some economic growth.

Possible Stamp Duty changes in the budget could include an extension to the thresholds at which SDLT is paid;?a reduction in the rate of SDLT; or?a temporary SDLT holiday -?depending on how aggressive the government feels it needs to be.

This approach, alongside offering a revised Help-to-Buy scheme, may be a popular move for the current government with the general public. It has been seen as a tried and tested method that has already been used with previous governments to successfully influence the housing market.

According to the latest statistics published by the Office for National Statistics and government suggested?the UK housing market has stagnated.?These statistics included house prices decreasing by 1.2 per cent in the year to the end of October 2023 and the number of UK residential transactions that completed in November being 22 per cent lower than the previous year.

These all indicated?there is “hesitancy” in the housing market. In order to combat this mindset, SDLT could be used as a fundamental tool. Historically SDLT is one method that has been used to impact the demand in housing and we know this because, since 2003 we have seen SDLT policies changed approximately 15 times.?

It's important to note that any such changes that may happen could be seen as a short-term action if a new government were elected.

Housing is expected to become one of the major battlegrounds before the election, which is likely to take place this autumn.