Simply Business - Insurance for your business

Call Us0333 0146 683
Our opening hours
Knowledge centre

Savings for landlords: the Budget sees stamp duty holiday extended

2-minute read

Savings for landlords: the Budget sees stamp duty holiday extended
Mollie Millman

Mollie Millman

3 March 2021

Landlords have been given a boost after the Chancellor announced an extension to the stamp duty holiday in his latest Budget.

Get your free guide to the 2021 Budget for landlords

Download your free in-depth guide to the 2021 Spring Budget for landlords. Get instant access to expert hints and tips in the click of a few buttons.

Your email address will be used by Simply Business to keep you posted with the latest news, offers and tips. You can unsubscribe from these emails at any time. Simply Business Privacy policy.

Rishi Sunak confirmed the extension of the tax holiday until the end of June.

Until then, the stamp duty holiday will continue to apply to the first £500,000 of a home’s purchase price.

It will then taper off, applying to the first £250,000 until the end of September, before returning to £125,000 at the beginning of October.

Landlords will continue to benefit from this holiday and potentially thousands of pounds in savings if they’re expanding their property portfolios in the coming months.

Property investors will still have to pay the three per cent stamp duty surcharge on second homes and buy-to-let properties.

Stamp duty holiday savings

The Chancellor announced the extension to allow any property sales agreed in recent weeks to complete and save up to £15,000 on their stamp duty bill.

It’s believed that delays in the transaction pipeline could otherwise see these sales fall through.

Jonathan Carroll, of Cartmell Shepherd Solicitors, said: “The sheer volume of transactions underway at the moment, combined with delays at mortgage lenders and others affected by home working, has led to a bottleneck in the market at just the wrong time, and this extension should give some time for that blockage to clear.”

David Postings, chief executive of UK Finance, said: “We welcome the certainty the extension and a phased approach to its ending brings.

“It will help prevent a cliff edge, reduce the risk of house sales collapsing and will prove beneficial for all parties involved in the housing market.”

Reform of stamp duty

John Goodall, chief executive of Landbay, also welcomed the extension of the stamp duty holiday, saying: “It is good news for landlords and anyone wanting to purchase a property.”

He added: “It will certainly enable all of the purchases currently in the pipeline to get over the line.”

However, many experts have called for the tax to be scrapped altogether as it’s out of date.

Mr Goodall added: “Longer term, the government really needs to look at reforming stamp duty more broadly as this archaic tax distorts the market.”

And James Hyman, of estate agents Cluttons said: “It’s encouraging that the government has offered this extension to the stamp duty holiday as it is the stepping-stone to long-term stamp duty reform for the future.”

What are your thoughts on the Spring Budget 2021? Let us know in the comments below.

Get set with tailored landlord cover

Over 200,000 UK landlord policies, a 9/10 customer rating and claims handled by an award-winning team. Looking to switch or start a new policy? Run a quick landlord insurance quote today.

Start your quote

We create this content for general information purposes and it should not be taken as advice. Always take professional advice. Read our full disclaimer

Find this article useful? Spread the word.


People also liked

Landlords could be targeted in new capital gains tax raid.

19 November 20202-minute read

Landlords could be targeted in new capital gains tax raid

Landlords could be hit by another massive tax raid, as the Office of Tax Simplification outlines its recommendations for an overhaul of…

Read more

Keep up to date with Simply Business. Subscribe to our monthly newsletter and follow us on social media.

Subscribe to our newsletter


Popular articlesBusiness resources from FarillioGeneral businessGuestInsuranceLandlordLandlord resources from FarillioLegal and financeMarketingNewsOpinionProperty maintenanceTradesmanCovid-19 business support hub


6th Floor99 Gresham StreetLondonEC2V 7NG

Sol House29 St Katherine's StreetNorthamptonNN1 2QZ

© Copyright 2021 Simply Business. All Rights Reserved. Simply Business is a trading name of Xbridge Limited which is authorised and regulated by the Financial Conduct Authority (Financial Services Registration No: 313348). Xbridge Limited (No: 3967717) has its registered office at 6th Floor, 99 Gresham Street, London, EC2V 7NG.