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The deadline of the extended stamp duty holiday is June 30, which means buyers who cannot complete their property transactions by then could lose up to £12,500 in tax savings. Normally, anyone looking to buy a property or land in the UK will have to pay the property tax. However, in July 2020, Chancellor Rishi Sunak decided to put a stamp duty holiday in place to keep the property market buoyant.
The tax holiday has been in place for properties worth £500,000 or less.
The holiday will end on June 30, unless Mr Sunak decides to extend it once again.
Currently, you can only get the stamp duty savings once you have completed your property transaction.
However, there is an online petition which is calling for the stamp duty savings to be applied once contacts are exchanged.
The petition has garnered over 12,700 signatures.
The petition details read: “People are finding themselves becoming trapped in a scenario whereby house prices are much higher, and at the same time they will now miss out on the stamp duty holiday.
“People are being financially punished from both sides, this from a policy that was designed to do the exact opposite.
“Exchanging contracts is exactly what it says.
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“A contract, a legally binding agreement, to purchase a house often with an immediate 10 percent deposit being paid.
“So why shouldn’t you benefit from the stamp duty holiday being triggered at that moment of exchanging contracts, rather than at the point of completion?
“This will allow in particularly new build buyers, with continuous building delays due to COVID-19, to benefit from this policy.”
The Government will respond to the petition because it has had more than 10,000 signatures.
If it receives 100,000 signatures, it may be considered or debate in Parliament.
When do you have to pay stamp duty?
You must pay stamp duty (Stamp Duty Land Tax) if you buy a property or piece of land over a certain price in England and Northern Ireland.
You will have to pay the tax in England and Northern Ireland when buying a freehold property, buying a new or existing leasehold, buying a property through a shared ownership scheme or transferring land or property in exchange for payment.
What are the stamp duty thresholds?
If you buy a property for less than the threshold, you don’t need to pay stamp duty.
The current threshold is £500,000, but on July 1 this will drop to £250,000.
This will end on September 30, and on October 1 you will pay stamp duty on properties costing more than £125,000.
For non-residential land and properties stamp duty will need to be paid for anything costing £150,000 or more.
What about first time buyers?
From July 1, first time buyers will get a discount which you pay less or no tax if the purchase price is £500,000 or less and you, and anyone else you’re buying with are first-time buyers.
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