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Petition to extend stamp duty holiday reaches 73k signatures

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  • 13/01/2021
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Petition to extend stamp duty holiday reaches 73k signatures
A petition asking the government to extend the stamp duty holiday by six months has gained over 73,000 signatures.

 

Jonathan Steel, the creator of the petition, said the new-build property he is planning to purchase is set for completion in March but if it is delayed, he will miss out on the tax break and be unable to afford it. 

The government has responded to say there are no plans to extend the holiday but if 100,000 people sign the petition 1 April deadline, it will have to be considered for Parliamentary debate. 

In its reply on 10 December, the Treasury said because property transactions fell by 50 per cent during the first lockdown, the temporary stamp duty tax holiday was introduced to “stimulate immediate momentum”. 

It continued: “As the relief was to provide an immediate stimulus to the property market, the government does not plan to extend this relief.  

Stamp duty land tax is an important source of government revenue, raising several billion pounds each year to help pay for the essential services the government provides. 

The Treasury also said once the stamp duty holiday ends, it would continue to help first-time buyers by raising the stamp duty land tax threshold to £300,000 for those who purchase a property below £500,000. 

All tax policy is kept under review and the government considers the views it receives carefully as part of that process, it added. 

 

Buyer concerns

Meanwhile, a recent survey conducted by Enness Global Mortgages found 67 per cent of buyers want more time to benefit from the tax break amid fears they will miss the current deadline. 

The study of 1,000 people also revealed 48 per cent were worried that backlogs across the market would cause them to miss out on the stamp duty holiday. 

Furthermore, a quarter said the tax break was the main motivation behind their decision to buy. 

Hugh Wade-Jones, managing director of Enness Global Mortgages, said: “It’s clear that the opportunity to save on stamp duty has helped to revitalise the UK property market in what have been tough times due to Covid.  

“Unfortunately, all good things must come to an end and it looks unlikely that we will see an extension beyond the original March deadline.  

“Perhaps a fair alternative to an extension would be to allow those who have an offer formally accepted prior to the end of March to also qualify for stamp duty relief.” 

 

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