Stamp Duty Land Tax Extension

A petition was launched to extend the Stamp Duty Land Tax (SDLT) for a further six months up until the end of September 2021.

It has been signed by more than 125,000 people. Government rules mean that it now must be debated in the House of Commons.

The Government responded initially on the 10th December 2020 to this petition and stated…

‘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 latest update is that on Monday 1st of February 2021, 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 the relief to Stamp Duty Land Tax during the current outbreak in light of the petition being signed and calling for this to be extended. Rt Hon Jesse Norman MP, the Financial Secretary to the Treasury, will respond for the Government.

Petition’s 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.

Watch this live from 4.30 pm on Monday 1st of February 2021: https://youtu.be/0420gQEA9Hs

 

What do you think the outcome will be?

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