Stamp duty holiday 'to be extended to end of June', report suggests

24 February 2021, 01:03 | Updated: 24 February 2021, 05:37

The chancellor is reportedly planning to extend the stamp duty holiday by three months
The chancellor is reportedly planning to extend the stamp duty holiday by three months. Picture: PA
Nick Hardinges

By Nick Hardinges

Rishi Sunak is planning on extending the stamp duty holiday by three months to the end of June, according to a report in The Times.

The chancellor will use next week's Budget announcement to move the deadline to the end of June, the newspaper has claimed.

Last year, the Treasury temporarily raised the stamp duty threshold from £125,000 to £500,000 for property sales in England and Northern Ireland.

But with the end date edging closer, many prospective buyers have been left rushing to get their transactions over the line before 31 March for fear of being hit with a £15,000 tax bill.

Some have urged Mr Sunak to shift the deadline to later in the year, whereas Labour has branded the stamp duty extension as "another tax giveaway to second homeowners".

However, a Treasury spokesman said they could not speculate on tax ahead of fiscal events.

Read more: Pfizer denies supply issues as Hancock says it'll be 'quieter' week for jabs

Read more: PM 'very optimistic' about removing all Covid restrictions by 21 June

No stamp duty on houses valued up to £500,000

A recent report by the right-leaning Centre for Policy Studies (CPS) said the tax break had seen house sales reach their highest level since before the 2007 financial crisis.

Data shows that after an initial decline in transactions between April and June 2020, the number of sales increased from 132,090 in the second quarter to 225,870 in the third quarter and 316,300 by the end of quarter four.

The think tank's research shows that stamp duty revenues rose by 27 per cent in Q3 compared to Q2 - from £1.1bn to £1.35bn - and suggests they will rise again in Q4 given the continued increase in transactions.

It is calling on the government to either permanently increase the threshold on primary residences to £500,000 - at a cost of £3 billion - or abolish it altogether.

Jethro Elsden, CPS data analyst and the report's author, said scrapping the holiday would be a "sledgehammer blow to the housing market".

Bridget Phillipson, Labour's shadow chief secretary to the Treasury, described the reported plans for a stamp duty extension as "another tax giveaway to second homeowners".

"These are the wrong priorities in the middle of the worst economic crisis of any major economy," she said.

"The chancellor should be taking action to protect family finances and secure our economy, not hitting them with tax rises while cutting them for landlords."

Listen & subscribe: Global Player | Apple Podcasts | Google Podcasts | Spotify

More Latest News

See more More Latest News

Live
Gatwick airport.

LIVE: Gatwick Airport South Terminal evacuated after 'suspicious item found'

Exclusive
Negative images from Band Aid did 'more bad than good' for Africa, says rapper Fuse ODG

Negative images from Band Aid did 'more bad than good' for Africa, rapper Fuse ODG tells LBC

'Thousands' of passengers were ordered out of Gatwick Airport's South Terminal

Gatwick Airport South Terminal evacuated after 'suspicious bag found near train station' as bomb squad called in

Simone White will be 'sincerely missed', a tribute to her has said

Devastated colleagues pay tribute to British lawyer as Laos ‘methanol mass poisoning’ death toll rises to six

Colette Fairbanks was sacked after sharing ‘offensive’ posts

Brexit views not protected from workplace discrimination, tribunal rules after woman sacked over ‘offensive’ posts

The Metropolitan Police carried out a controlled detonation of a suspect package near the US embassy in London

US Embassy in London on 'lockdown' as police investigate 'suspect package'

Coleen Rooney said her husband Wayne has not been forgiven in the court of public opinion

Coleen Rooney opens up on Wayne's 'difficult' mistakes as she says he hasn't been forgiven in court of public opinion

Many of the victims were staying at the Nana Backpacker Hostel

Laos hostel owner arrested after Brit lawyer becomes fifth tourist to die in 'poisoning'

Holly Bowles, 19, from Melbourne, has died in the ‘methanol mass poisoning’

Sixth person dies in Laos ‘methanol mass poisoning’ as hostel owner detained by police

Exclusive
Feargal Sharkey tests the River Test with LBC

'We're destroying what should be the finest river on Earth': Feargal Sharkey tests the River Test with LBC

Household energy bills will rise again from January

Household energy bills to rise by £21 a year from January in further blow for Brits this winter

Putin issued a chilling threat to the West as he confirmed Russia launched a ballistic missile against Ukraine

'The world must respond': Zelenskyy warns that Putin is 'testing' the West after confirmed use of new ballistic missile

Matt Gaetz withdraws as Donald Trump's nominee for attorney general amid sexual misconduct allegations

Donald Trump nominates Pam Bondi for attorney general hours after Matt Gaetz withdraws

Starmer has backed the International Criminal Court over its arrest warrant for Netanyahu

Netanyahu faces arrest if he travels to Britain as Starmer vows to enforce International Criminal Court warrant

Yvette Cooper has branded the Rwanda scheme a "complete con."

Yvette Cooper to crack down on anti-social behaviour with new 'respect orders' as repeat offenders face jail time

King Charles III And Queen Camilla on Coronation Day

King Charles' coronation cost taxpayer £72 million, report reveals