Rishi Sunak considers extending stamp duty holiday to prevent buyers dropping out of home sales

Rishi Sunak is considering extending the stamp duty holiday by an extra six weeks to stop buyers dropping out of sales if they miss the deadline.

The Chancellor fears thousands being caught in a ‘completion trap’ and is looking to extend the holiday until mid May, past the current March 31 deadline.

A cross-party debate heard earlier this month that transactions worth billions of pounds were at risk unless the tax cut was extended, with some deals already falling through. 

Rishi Sunak is considering extending the stamp duty holiday by an extra six weeks to stop buyers dropping out of sales if they miss the deadline

Rishi Sunak is considering extending the stamp duty holiday by an extra six weeks to stop buyers dropping out of sales if they miss the deadline

Rishi Sunak is considering extending the stamp duty holiday by an extra six weeks to stop buyers dropping out of sales if they miss the deadline

There have been calls to implement a six-month extension but Sunak believes this would have a ‘gratuitous’ impact on tax receipts, The Telegraph reports.  

A source said: ‘It is certainly the case that a lot of people would be caught in the completion trap if the holiday were to end when it is due to.’  

The threshold for paying stamp duty was raised from £125,000 to £500,000 in July in an effort to boost the housing market and the economy.

But the buying process has been hampered by severe delays, with lockdowns, staff absences and increased demand hindering solicitors, mortgage lenders and search departments.

It has led to some buyers waiting for up to 100 days for the conveyancing process to go through.

This has added to the fears that many sales would fall through by the March 31 deadline.

The threshold for paying stamp duty was raised from £125,000 to £500,000 in July in an effort to boost the housing market and the economy

The threshold for paying stamp duty was raised from £125,000 to £500,000 in July in an effort to boost the housing market and the economy

The threshold for paying stamp duty was raised from £125,000 to £500,000 in July in an effort to boost the housing market and the economy

Mortgage lender Paragon estimate that almost two thirds of buyers nationwide, representing sales worth £1.5billion, are in a chain where someone is dependent on completion by the end of next month. 

On Thursday, the Help to Buy equity loan scheme was also extended until the end of May.  

Ministers also ruled out this week introducing a new property levy to replace stamp duty and council tax after a study found it could lead to higher bills in the South East.

MPs were told last month the idea of introducing a ‘proportional’ tax based on home values was ‘under review’.

But a Government spokesman said: ‘We have no plans to introduce a new form of annual property tax.’

It comes as Sunak also considers implementing a £6billion ‘stealth tax’ by freezing personal income tax allowances.

Millions would hand over more money to the government with the measures which could be announced in next month’s Budget.

Income tax thresholds may not see annual increases, which are normally aligned with inflation.

This would mean the average person could be forced to pay a higher tax rate on a larger proportion of their income.

Link hienalouca.com

Advertising:

Tips to Find Low Priced Luxury Holiday Package Deals Fast

For most families, it has already been a common practice to spend the Holiday season in a foreign location. This is caused by the aviation market changes which have given a lot of benefits for people who travel a lot. Airfares going to different tourist destinations are becoming more inexpensive. What does this mean? If there is a perfect time to purchase luxury holiday package deals, now it the right time! Based on the market trend nowadays, you can save both money and time when you go for a luxury holiday. There are countless offers that combine travel and accommodation in one package which is a lot cheaper than getting separate deals. Aside from that, it is also risky to individually book the services that you need for the vacation. You might end up missing out on some important details of the trip. Unlike when you take advantage of luxury holiday package deals, you can be sure that everything is organized meticulously and according to what you really need. Nonetheless, you would still need to carefully select the package that would fit your needs. Review the following tips in getting packages that are reasonably priced. · Normally, luxury tour packages include accommodation, flight travel and transportation to individual tourist destinations. It would be best to choose the complete package so you won’t have to worry about other vacation elements. In addition to that, these are the packages that have the biggest discounts. · You can get big mark down prices, if you will purchase more packages. It is not a bad idea to share the wonderful moment with your loved ones. By doing so, you would not only enjoy, you will also save more money. You can even use your savings for other activities on your vacation. · It would be best to know how much you are willing to pay for the luxury tour packages. You can already work around your budget. You have to stick to your budget. If not, you might end up spending a lot and you will be left with less money for your vacation. · Prices may vary depending on the destination of the tour. You can do a research about places that are attractive yet inexpensive. There are thousands of destinations and you just have to choose wisely. · There are packages that include recreational activities. This means that you are paying for all the activities when you purchase these packages. The right thing to do is to make sure that the activities that are included would be the ones that you really enjoy. There is no sense in paying for activities that will not really make your vacation memorable. If you are going with friends, you should also consider their preferences so that you can be sure that everyone will enjoy the trip. There are other ways on how you can be sure that you are getting the best deal for your luxury holiday vacation. No matter how you choose to do it, you have to get adequate information about the packages. This will help you determine whether it is worth the price.

(Total views: 103 Time, 1 visits per day)

Leave a Reply