Date Published 25 February 2021
Landlords currently buying properties and concerned they may not make the March 31 stamp duty holiday deadline have good news - there's likely to be an extension.
The Times has an exclusive that Chancellor Rishi Sunak will extend the tax break until the end of June in order to avoid as many as 100,000 purchasers - thousands of them landlords - missing out on the exemption because of slow transaction processes.
The formal announcement will come on Wednesday in the Chancellor's Budget.
No mention is made in the article about Capital Gains Tax, which has been the subject of speculation in recent weeks following an Office of Tax Simplification report last year urging increases to bring it more into line with income tax - this is a critical issue for landlords seeking to maximise profits when selling their properties.
What isn't clear yet is whether the extension is three months for all current and new buyers of properties up to £500,000 - thus creating a new cliff edge - or a 'tapered' extension only for current buyers.
The furlough scheme and the business rates holiday for retail, hospitality and leisure sector will also reportedly be extended, along with the VAT cut for hospitality and tourism.
The Times article also suggests the Chancellor will commit to raising Corporation Tax over the duration of the current Parliament, which still has almost four years to run. The increase could ultimately be from a current 19 per cent to an eventual 25 per cent.
