1. Stamp Duty Holiday for <£500k is extended to 30th June 2021
There has been a lot of speculation about this and they have finally dropped the bomb that all house sales up to £500k in the UK will be free of Stamp Duty tax. If you have a sale underway that’s taking a long time to complete then you will still benefit from it. If you haven’t started the process of buying a house, we would suggest making sure you have your Stamp Duty tax ready in case the sale doesn’t complete in time. There is still a huge backlog from the increase in activity over the last six months so best to be safe.
Note; this is only on residential properties, not buy-to-lets or commercial properties.
2. Stamp Duty Holiday for <£250k is extended to 30th September 2021
As above, any residential house sales made before the end of September will be free from Stamp Duty tax.
After this date the previous Stamp Duty calculations will be reinstated when just properties under £125k are free from Stamp Duty Tax.
3. The 5% Loan-to-Value mortgages are back!
The government is guaranteeing mortgages for first time buyers as well as existing homeowners on 95% mortgages. Buyers purchasing properties up to £600k will be eligible for just 5% deposits with this new scheme meaning you can bag an above average property for just £30k down.
4. The furlough scheme is extended until the end of September
If you are still claiming furlough or your company is encouraging employees to take it in turns to be on furlough then you will continue to benefit until 30th September. Some feared that the end to the furlough scheme before jobs return to normal would prompt some urgent house sales but luckily this can be avoided with the extension.
5. Self Employment Grant paid in April and July
Next month self employment grants will be paid up to £7.5k or 80% of historic average profits over three months with eligibility extended to people who became self employed in 2019/2020.
6. Business rates holiday continues until June
If you run your own business in England, you will also benefit from a tax holiday until June and then a 75% reduction in the tax after that. Corporation tax is said to increase from 2023.
7. Income tax allowance freeze continues
Your income tax personal allowance will be frozen at £12.5k from 2022 until 2026, and the higher rate 40p tax band at £50k is frozen for the same period. If you have any questions of how you or your home will be impacted by the budget, you can book a call with a property expert here