Stamp Duty Land Tax Holiday Deadline is Looming
As you will be aware the Stamp Duty Land Tax holiday is due to end on 31 March 2021. The matter was debated in the House of Commons on Monday 1 February and the options put forward by Elliot Colburn outlined four options the Government might consider as a result of the debate:
- Move the deadline to a new arbitrary date
- Consideration for relief on properties already so far along the process
- Taper off relief by eligibility of house price over a period of months
- Maintain the threshold at £500k permanently
No decision or agreement was reached and the holiday is still due to end on 31 March 2021. If your transaction completes after this time then the assumption is that SDLT will be payable. The Government have not stated that the previous rules will be amended and, therefore, if your transaction COMPLETES on or after 1 April 2021 SDLT will be payable on the basis of the rates which were in force prior to the SDLT holiday.
First time Buyers
It is important to remember that if you are a First Time Buyer, or if you are entitled to another relief, these should still be available from 1 April 2021. Therefore, it may make little practical difference to you whether the matters completes before 31 March 2021 or not. It would also be beneficial to visit the Government’s’ SDLT Calculator so that you are aware of the amount of tax due if completion does take place after 31 March 2021. A link to the calculator is here:-
https://www.tax.service.gov.uk/calculate-stamp-duty-land-tax/#/intro
You need to be aware that all parties in your chain will need to be able and willing to move. You should also take into account that COVID restrictions may affect other companies’ working patterns and people may now return to remote working and closing their offices to visitors. Please also bear in mind, that COVID restrictions may have an effect on other parties involved in your transaction, such as local authorities (for searches), surveyors, valuers, mortgage companies, estate agents, banks etc., which are all beyond our control.
Removal Firms
We are being told by Clients and Agents that removal firms are already very booked up for March. Whilst we may be able to get the legal work finalised in time if there is no practical way to move this will inevitably cause delays. You should speak to removal firms to ascertain their availability. Please do not book a removal slot and pay a deposit until the completion date is firmly agreed. Exchange should have taken place before you book a slot as this confirms the completion date. If you book a slot before exchange has taken place and the completion date changes the removals company may not be able to accommodate your new date and you may lose the deposit you have paid to them.
Mortgage Offers
Please do note that some mortgage offers are conditional upon the matter completing on or before 31 March 2021. You will need to ensure you are aware of all conditions attached to your mortgage offer and ensure these are met.
We intend to continue to processing transactions as we have been. Should we become aware of any change to the planned ending of the SDLT holiday we will seek to advise our Clients as soon as possible. Please do be aware that we do not have any further information than what the Government publishes on its website. If any changes are made please do not contact us and wait for us to contact you.
Get in touch
In view of the fact all of your circumstances are different, it is always important to seek advice from an experienced law specialist to discuss your circumstances and consider the different options available to you.
If you wish to speak to any of the property conveyancing team about the Stamp Duty Land Tax Holiday Deadline, or anything related to this, then please get in touch. Either call on 01323 841481 to arrange an appointment or please fill in the form below and someone will get in touch.
Please note that this article does not constitute legal advice. You should always speak to a legal professional to discuss your circumstances and consider your options.