To ask the Chancellor of the Exchequer, if he will take steps to compensate property sellers who agreed sales ahead of the March 2020 covid-19 lockdown and therefore failed to qualify for the stamp duty freeze.
As with many tax policy announcements made at fiscal events, the change to SDLT was effective from the day of announcement. The £500,000 SDLT threshold applied to sales that have been completed or substantially performed between 8 July 2020 and 30 June 2021.
The temporary SDLT relief was designed to stimulate immediate momentum in a property market where property transactions fell by as much as 50 per cent during the COVID-19 lockdown in March. This momentum in the property market has supported the jobs of people whose employment relies on custom from the property industry, such as retailers and tradespeople.
The relief will not be backdated for those who purchased a property before the relief was introduced. Any changes to extend the relief retrospectively would inevitably lead to similar borderline cases for purchases completed at an earlier point.