The current Stamp Duty Land Tax (SDLT) holiday is set to expire on March 31, 2021, with strong assertions from the Treasury that it will not be extended. Here, Battens Solicitors take a look at what it means for current and ongoing transactions:
Any conveyancing transaction that has not completed on or before March 31, 2021, will attract SDLT at the rates which were in place prior to the SDLT holiday. As an example, a purchaser wishing to purchase a property for £390,000 post March 31, 2021, will have had to pay £9,500 of SDLT.
A full breakdown of the rates can be found here – https://www.gov.uk/stamp-duty-land-tax/residential-property-rates.
For many it is now a race against the clock to ensure their transaction completes prior to the end of the SDLT holiday, but regrettably there are many factors which are outside of our control which may mean that completion before the end of the holiday is not going to be possible.
For example, delays within the chain relating to mortgage paperwork, valuations, search results and COVID related illness could all delay an agreed completion date.
If you are a first time buyer, you may still benefit from not having to pay SDLT as the relief for first time buyers introduced prior to the current SDLT holiday will remain in place post March 31, 2021.
This relief means that first time buyers will continue not to pay SDLT on the first £300,000 of their purchase price, 5% SDLT is then payable on the portion from £300,001 to £500,000 and for those first time buyers purchasing over £500,001.00 the rates are the same as those that have purchased before.
While many hundreds of thousands of buyers have benefitted from the SDLT holiday since its introduction in July 2020, its time is now nearly up for the majority.
For further information and should you have any questions about completing before the end of the SDLT holiday please speak with your conveyancer.
Sarah Ford: email sarah.ford@battens.co.uk; telephone 01929 500328
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