The reduction in stamp duty land tax that has been a catalyst for a highly competitive housing market for housebuyers, landlords and letting agents is set to continue for another six months, according to a government budget announcement.
Among other announcements aimed at the housing market, the 2021 Budget states that the stamp duty holiday will not end on 31st March but instead continue until the end of September, albeit with a reduction set to take place in June.
For landlords and letting agents in Scotland, however, the Land and Buildings Transaction Tax which was cut in a similar move to the rest of the UK is still set to end after March.
Currently, any residential property that is purchased in England and Wales which costs under £500,000 will be free from any stamp duty, after which the remaining amount will be taxed at an increasing level from 5 per cent up to 12 per cent for properties worth over £1.5m.
In July, this stamp duty-free amount will be cut in half from £500,000 to £250,000 until the end of September, where the rate will be cut in half again to £125,000.
In Scotland, the rate will reduce from £250,000 down to £145,000, as it was before 15th July.
The Scottish Finance Secretary, Kate Forbes, said that the decision was to stick to the original plan for the reduction, and instead extend 100% relief on non-domestic business rates and freezing council tax.