LONDON, Feb 24 ― British finance minister Rishi Sunak is preparing to extend the stamp duty holiday by three months until the end of June in an attempt to boost activity in the housing market as the country emerges from lockdown, The Times reported today.

The extension to the policy, which covers sales of properties worth up to £500,000 (RM2.8 million), could cost the government £1 billion, the report added.

Britain raised the threshold of property tax to £500,000 last July from £125,000, exempting nine of 10 people buying a main home from stamp duty. The temporary cuts are set to expire in March 2021.

Sunak will use his annual budget on March 3 to move the policy to the end of June, bringing it in line with the easing of lockdown restrictions, the newspaper said.

He will also announce plans to raise corporation tax while Treasury officials are considering a 25 per cent tax hike.

Sunak said yesterday that he would set out more details of job support measures at his budget next week, after official figures showed unemployment had risen to its highest since early 2016. ― Reuters