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Tax Year Changes In 2021

March 19th 2021
By: Thomas Morris
Tax Year Changes In 2021

The end of March and beginning of April is often a busy time for many people. The end of one financial year, and the start of another, sees many people and households looking to place their finances in order.

At Thomas Morris, we are here to assist you as best we can in the housing market. There are a number of issues that impact the housing market at this time. The tax year changes in 2021 might not be as severe as they have been in previous years, but there are still issues for people to consider.

If you would like to discuss your options, please get in touch, and we will be more than happy to assist you.

Stamp duty holiday – any changes?

A further announcement as to whether there will be an extension on the stamp duty holiday might not come until the March Budget, if at all. However, any changes are only likely to benefit buyers already in the buying process.

Anyone who is yet to make an offer on a property, or start the buying process, is unlikely to see a change which will assist them in saving up to £15,000 when buying a home.

If there are any changes to the stamp duty holiday, we will let you know. However, for now, it is best all prospective buyers, and vendors, treat the 31st of March 2021 as the deadline for the stamp duty holiday.

There is no denying this holiday has invigorated the housing market, and has encouraged many people to move home. It remains to be seen what the longer-term impact on the housing market will be.

Help to Buy equity loan scheme

The Help to Buy equity loan scheme was set to close on 31st of March 2021, but there has been a two-month extension. This means the scheme will, in its current form, change on 31st of May 2021.

Currently, the scheme assists buyers to purchase a new-build property with a 5% deposit, while the Government provides a 20% five-year interest-free equity loan.

When the scheme changes, this level of assistance will only be made available to first-time buyers.

Mortgage payment holidays

Mortgage lenders have warned borrowers that anyone looking to apply for a mortgage payment holiday should do so before 31st of March 2021.

The mortgage payment holiday scheme was initially due to close on 31st of October 2020. As the impact of the pandemic continued, the scheme was extended. Homeowners can benefit up the end of July.

Initially, the scheme enabled mortgage holders to defer mortgage payments for up to six months, but for anyone now applying for their first holiday, will only be able to benefit for three months.

While you can benefit from deferring your mortgage payments until 31 July, lenders have warned that you must apply for one of the mortgage payment holidays before 31 March.


 

The scheme enables you to defer mortgage payments for up to six months, although if you are applying for your first holiday, now you will only be able to defer them for up to three months.

If you would like to arrange a valuation of your home, even in these challenging times, we can provide this service. We can currently provide a range of safe property market services, aimed at helping you make an informed move.

If you are looking for help with any matter of the property or lettings market, it is best to speak to property professionals. You can book a sales or rental valuation appointment directly on line at a time and date of your choice by clicking here or alternatively click here for individual branch contact details.