The current Stamp Duty Land Tax (SDLT) holiday is set to expire on 31 March 2021 with strong assertions from the Treasury that it will not be extended. So what does it mean for current and ongoing transactions?
Any conveyancing transaction that has not completed on or before 31 March 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 £390,000.00 post 31 March 2021 will have had to pay £9,500.00 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. This list is not exhaustive and whilst we will endeavour to complete your transaction prior to or on 31 March 2021, no guarantee can be given and Battens Solicitors Limited will not accept liability for any direct or indirect financial loss as a result of completion taking place after 31 March 2021.
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 31 March 2021.
This relief means that first time buyers will continue not to pay SDLT on the first £300,000.00 of their purchase price, 5% SDLT is then payable on the portion from £300,001.00 to £500,000.00 and for those first time buyers purchasing over £500,001.00 the rates are the same as those that have purchased before.
Whilst 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.
Contact Sarah Ford 01929 500328