Important information for all residential property clients: The SDLT Holiday
The current Stamp Duty Land Tax (SDLT) holiday ends on 31 March 2021. Any property matters that have not completed on or before that date will attract SDLT at the previously prevailing rates. You can calculate your SDLT by following this link:
Regrettably many aspects of your transaction, including the timing, are not wholly within our control and there are many factors which can prevent a sale, purchase or transfer of equity proceeding. Buyers or sellers can delay things for many reasons, including due to surveys, valuations, obtaining mortgage offers, completed forms and documents from third parties and the usual conveyancing searches.
In these times of Pandemic, delays can be increased where some parties, conveyancers, banks or search providers are working from home or may have staff and colleagues isolating or shielding or off sick.
In addition in an ever changing world buyers and sellers remain able to simply change their minds as to whether to buy or sell up to the point of exchange of Contracts.
If your matter does not complete by 31 March and you are a first time buyer you may still benefit from first time buyer SDLT relief (the above SDLT link will advise you)
If you are not a first time buyer then after 31 March you will pay the full rate of SDLT and you should take steps to plan your finances accordingly. You should be aware that even if you can go ahead at the increased rate of SDLT others in the chain may not be able to and so you should ask your estate agent to establish the position of others in good time. Note that any price adjustments will need to be agreed with all parties and mortgage lenders (as applicable).
On very rare occasions a matter that is due to complete on a fixed date does not do so (often due to matters outside the control of the parties), and if that is the case and this results in your completion being delayed beyond 31 March 2021 then you will not benefit from the SDLT holiday and the full rate will be payable.
You should note that separate rules apply for Land Transaction Tax in Wales and if you are living overseas and buying in England and Wales then there are further additional rates of SDLT payable from 1 April 2021,
This is not intended to be an exhaustive note on the matter and you should address any specific questions you may have to your conveyancer.
Please note that we will not accept liability for any direct or indirect financial loss as a result of completion taking place after 31 March 2021.