What is stamp duty?
Stamp Duty or Stamp Duty Land Tax (SDLT) is a charge made to house buyers when they purchase a residential property or piece of land. It is one of the costs that need to be considered and accounted for when you are thinking of purchasing a new home.
When do I normally pay stamp duty?
When you buy a property, you usually pay a stamp duty tax on all properties over £125,000, or over £300,000 for first-time buyers.
What is the stamp duty holiday?
On the 8th of July 2020, the Chancellor of the Exchequer announced a new stamp duty holiday to boost the property market following the Coronavirus lockdown. This new scheme means that between the 8th July and the 31st March 2021, all properties purchased at £500,000 or under will be exempt from the stamp duty charge. This is the same for first time buyers or those that have owned a property before.
What happens if you are buying an additional property?
There has also been a cut for buyers of additional properties, for example buy-to-let investors. The new rate for additional properties starts at three per cent up to £500,000.
When does stamp duty holiday end?
Your property purchase needs to be completed by the 31st March 2021 to avoid paying stamp duty charges.
How long does it take to buy or sell my house?
Usually, we would advise clients that it can take around 12 – 16 weeks to complete a sale or purchase of your house. However, because of delays from Surveyors, property searches, valuations, mortgage offers and Solicitors the process is taking longer. Due to this, we cannot guarantee that clients will avoid paying stamp duty charges. As always, it will depend on the individual case and how many people are in the housing chain.
How quickly can you complete my case to so that I can take advantage of the stamp duty holiday?
Our staff are working exceptionally hard to keep all cases moving as fast as we can. We may be affected by delays which are beyond our control, but we will keep our clients up to date at each stage and will set realistic expectations about their individual case. Our staff are pulling out all the stops to try and help as many people move before the stamp duty holiday ends.
What will happen if I don’t complete my house purchase before the stamp duty holiday ends?
If your Conveyancing case does not complete before the 31st March 2021, then you will need to make a payment for the usual stamp duty charges. Further information about that can be found https://www.gov.uk/stamp-duty-land-tax
If I start to purchase a new property in February, will I meet the stamp duty holiday deadline?
As it usually takes at least 12 weeks to complete a house purchase, it is extremely unlikely that you would avoid paying stamp duty charges.
As there are delays, how long is it currently taking to buy a property?
With the additional pressure on the property market, we are advising that it is now taking around 16-20 weeks to complete the Conveyancing process.
Are there any risks to buying or selling during this time?
There is obviously a risk that someone in your moving chain may be affected by Coronavirus which could delay your house sale or purchase. We work closely with those involved in your sale and purchase and will be as flexible as we can if this happens. However, if this occurs once you’ve exchanged contracts and you’re unable to go ahead with the completion date agreed, this could mean additional costs or you may miss the stamp duty holiday and need to pay stamp duty charges.
What if I or people in my moving chain are affected by the Coronavirus?
For anyone self-isolating, affected by coronavirus or following medical advice, this may mean they’re unable to move house for the time being and completion could be delayed. If this happens, we’ll talk this through with you, look at all your options and come up with a plan. Unfortunately, if this does happen close to the end of stamp duty holiday, then you may need to pay stamp duty charges.
We are here to help our clients during this time, please get in touch with your case handler if you have any questions about the stamp duty holiday. Thank you for your patience and understanding.