It is estimated that the stamp duty holiday from July 2020 to March 2021 has cost the Treasury £3.8 billion. In total, the stamp duty accounts for 2% of the Treasury’s total tax intake.
This means that the Chancellor will be wary to extend the stamp duty holiday for too much longer. Doing so would reduce a large portion of the Treasury’s income – something the UK government simply cannot afford to do right now.
Property developers will have to be smart, and think outside the box to make sure that the market stays active beyond any tax reintroductions. Some are doing this by offering to ‘extend the stamp duty holiday’, and covering costs up until October 2021 themselves.
However, even with wonderful offerings like these, house buyers must be careful. Some developers, while covering the costs of stamp duty on their property, will simultaneously increase the price of the building to balance this out. Buyers must therefore be sharp, and look out for any ‘red herrings’ when it comes to identifying excellent deals in the market going forwards.
Whatever the Chancellor decides, it may have a significant impact on your personal and company finances. It is therefore crucial that you have a financial cushion that prepares you for any possibility.
If you want to discuss your situation with an expert financial advisor, P2M Group can help. Contact us on 0208 952 4462 or email dina@p2m-group.com.