3 March 2021
Jonathan Evans, real estate director at Deloitte, comments on the Chancellor’s statement:
“The extension of the Stamp Duty holiday is good news for the housing market.
“Coming at an additional cost to the Exchequer of £1.6bn, it will benefit thousands of prospective buyers and sellers, including those already facing difficulties in completing their deal before the end of the current holiday in March.
“For the average house purchase in England of £269,150, there will now continue to be no tax payable until 1st July, when (based on today’s average) tax of £957 would be payable up until the 30th September, reverting to the usual £3,457 after that date.
“For the average purchase in London of £496,066 there will now continue to be no tax payable until 1st July, when (based on today’s average) tax of £12,303 would be payable up until the 30th September, reverting to the usual £14,803 after that date.
“For purchases over £500,000 the tax will increase by £12,500 on 1st July – so there is still a significant incentive for more expensive transactions to complete before the end of June.
“With lockdown not due to lift in England before 21st June, it’s likely that many buyers and sellers will continue to be affected by the factors that have caused delays to current deals - and so the pressure to complete before the end of June will build again as that date gets nearer.”
Tax policy referred to covers England & Northern Ireland (Scotland and Wales have their own tax arrangements).
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Deloitte has a range of spokespeople available to comment on today’s statement. They can be reached on 020 7007 3333 or 0207 303 5054 or one of the following numbers:
• Ian Stewart – chief economist (07789 036 944)
• Amanda Tickel - head of tax policy (07920 270 964)
• Rachel McEleney - personal tax (07826 891 752)
• Zubin Patel – corporate tax (07795 968 483)
• James Warwick - employment tax (07768 178 264)
• Gareth Pritchard – indirect tax (07920 006 216)
• Mike Barber – climate change/sustainability (07920 270 964)
• Jonathan Evans – stamp duty (07818 535 803 /07789 036 944)
• Gerry Biddle – business rates (07785 381 369)
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