Petition Extend the Stamp Duty Holiday for an additional 6 months after 31st March 2021
Extending the Stamp Duty Holiday for an additional 6 months will assist many buyers who are looking to move to a property that they will not be able to afford otherwise.
This will help to stabilise the housing market
I am looking to move into a new build which is currently due to complete at the start of March 2021. If this build is delayed past 31st March 2021 then i will not be able to afford the stamp duty so will not be able to afford the house.
Parliament debated this topic
This topic was debated on 1 February 2021
This response was given on 10 December 2020
The SDLT holiday was designed to be a temporary relief to stimulate market activity and support jobs that rely on the property market. The Government does not plan to extend this temporary relief.
Read the response in full
The COVID-19 pandemic and subsequent lockdown caused uncertainty for those buying and selling residential property and property transactions fell by as much as 50 per cent during the first national lockdown. To stimulate immediate momentum in the property market and to support the jobs of people whose employment relied on custom from the property industry, the Government decided to introduce a temporary Stamp Duty Land Tax (SDLT) relief. This relief increased the starting threshold of residential SDLT from £125,000 to £500,000 from the 8 July 2020 until 31 March 2021. Since the relief was introduced, transactions have increased and seasonally adjusted data shows that in October 2020, transactions were 8% higher than October 2019.
As the relief was to provide an immediate stimulus to the property market, the Government does not plan to extend this relief. SDLT is an important source of government revenue, raising several billion pounds each year to help pay for the essential services the Government provides.
The Government is committed to supporting home ownership and helping people get on and move up the housing ladder. When the SDLT Holiday ends, the Government will maintain a SDLT relief for first time buyers which increases the starting threshold of residential SDLT to £300,000 for first-time buyers that purchase a property below £500,000. In addition, a new Help to Buy scheme will be introduced from 1 April 2021. This scheme will run until March 2023.
All tax policy is kept under review and the Government considers the views it receives carefully as part of that process.
Other parliamentary business
Government announces extension of Stamp Duty Land Tax relief in the 2021 Budget
On Wednesday 3 March, the Chancellor Rishi Sunak MP presented the 2021 Budget, setting out the Government's plans for tax and spending over the next year.
In the Budget the Government committed to extending the Stamp Duty Land Tax (SDTL) holiday, as called for by the petition you signed.
The temporary increase in the residential SDLT Nil Rate Band to £500,000 in England and Northern Ireland will be extended until 30 June 2021. The Nil Rate Band is the amount paid for a property on which no SDLT is paid. Any amount paid over the Nil Rate Band incurs a SDLT payment at the standard rate.
From 1 July 2021, the Nil Rate Band will reduce to £250,000 until 30 September 2021 before returning to £125,000 on 1 October 2021.
Find out more about the extension of Stamp Duty Land Tax relief: https://www.gov.uk/guidance/stamp-duty-land-tax-temporary-reduced-rates
You can read a summary of the key measures announced in the Budget here:
You can read the Chancellor's full Budget Speech to the House of Commons here:
Petitions Committee reaction
Petitions Committee Chair Catherine McKinnell MP, and Committee member Elliot Colburn MP, have welcomed the announcement of an extension to the Stamp Duty holiday, as called for by Mr Colburn and MPs from across the House of Commons during the recent e-petition session on this petition.
What is the Budget?
The Budget is a statement by the Chancellor of the Exchequer, updating MPs on how much the Government is spending, borrowing, and receiving from taxation. The Budget usually happens once per year.
The Budget is also when the Chancellor announces changes to tax and Government spending. This means the Budget is often used to announce new Government policies or changes to existing policies.
Find out more about Parliament's role in scrutinising the Budget:
Who is the Chancellor?
The Chancellor of the Exchequer is the Government Minister in charge of the Government's tax and spending decisions. They are appointed by the Prime Minister and are one of the most senior Government Ministers.
Find out more about the role and the current Chancellor, Rishi Sunak MP:
E-petition session on Stamp Duty Land Tax Relief during the Covid-19 outbreak
On Monday 1 February the Petitions Committee will hold a virtual e-petition session to discuss Stamp Duty Land Tax relief during the Covid-19 outbreak.
MPs will discuss relief to Stamp Duty Land Tax during the current outbreak in light of the petition you have signed calling for this to be extended. Rt Hon Jesse Norman MP, the Financial Secretary to the Treasury, will respond for the Government.
Watch live from 4.30pm on Monday 1 February:
Petitions sessions and debates are an opportunity for MPs to discuss the important issues raised by petitions, however they cannot directly change the law or result in a vote to implement the request of the petition.
This petition is being considered in an e-petition session because sittings in Westminster Hall (where e-petitions are normally debated) have been suspended as part of Parliament’s arrangements for adapting to the Coronavirus outbreak.
Find out more about this session: https://committees.parliament.uk/committee/326/petitions-committee/news/138754/mps-to-discuss-petition-relating-to-stamp-duty-relief/