As part of his 2021 Budget, Chancellor Rishi Sunak has announced that the stamp duty holiday will be extended for a further three months until the end of June. Whilst this will be welcome news for buy to let property investors, there are still charges involved so it’s important to know the details. Here are the key facts for property investors regarding the stamp duty holiday extension.
Stamp duty holiday for buy to let property investors
Stamp duty land tax (SDLT) is a tax on the purchase of property or land in England and Northern Ireland. Since April 2016, anyone buying an additional property, including buy to let landlords and those purchasing a second home, have paid a 3% surcharge on the standard rate of stamp duty. Properties sold for less than £40,000 are exempt from this, meaning no stamp duty is paid on them.
Last year, many buyers and property investors alike took a financial hit because of the coronavirus pandemic and began reconsidering their options. In response, the government announced it would temporarily increase the nil-rate band (the amount at which tax becomes payable) to £500,000. The deadline was initially set for the end of March but it has now been extended until the end of June, bringing much-needed relief to investors who are in the process of expanding their property portfolios. The 3% surcharge still applies, but properties bought for under £40,000 do not count when determining if an additional property is being bought.
For those who miss the first deadline, the chancellor has announced there will be a staggered return to the normal rate of stamp duty. At the end of June, the nil-rate band will reduce to £250,000, and it won’t return to the normal rate of £125,000 until the end of September. This means there’s still time for buy-to-let property investors to take advantage of the stamp duty holiday if they haven’t done so already, potentially saving thousands of pounds.
How we can help with your buy to let property investment?
The Mistoria Group offers turnkey buy-to-let property investment solutions in the areas of Bolton, Liverpool and Salford, specialising in the high-yielding student property investment market. Our services range from professional property sourcing to expert, up-to-date tax advice. If you would like to know more about stamp duty or anything else regarding buy-to-let property investment, call us on 0800 500 3015 or use our contact page.