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Stamp Duty Land Tax Holiday – Will you meet the deadline?

Stamp Duty Land Tax Holiday – Will you meet the deadline?
February 2021

Will You Meet The Deadline?

The Government’s Stamp Duty Land Tax (SDLT) holiday was introduced in July last year, to assist the property market during COVID-19.

It allows any property valued below £500,000 to be exempt from the tax until 31st March 2021. After this the usual SDLT rates will be applied to properties with a market value in excess of £125,000.

Unsurprisingly, rapid growth was seen in the selling and purchasing of properties last year as a result of the SDLT holiday announcement, resulting in extensive delays in third party searches being returned which slowed the conveyancing process down.

With the end of the SDLT holiday period fast approaching, many buyers and sellers are feeling the pressure to complete their property transactions within the benefit period, or they will face an unwanted SDLT bill.

We hope that the announcement in the budget on 3rd March will outline an extension to this date for those already in the process and unable to complete by the 31st March, but having a Plan B to cover this additional cost in the event that you experience an unexpected delay would be very wise.

The Plan B is to ensure you have access to funds to cover the unexpected SDLT liability.  It can run into the thousands, and may not have been taken into consideration when originally budgeting. It would be best to discuss this with your mortgage adviser.

Another consideration is  a liability insurance that will allow your transaction to complete without searches being returned, your solicitor will be able to advise on this. It is imperative to ascertain whether you will be able to access additional funding for the SDLT liability if required.

This should be considered NOW if you feel there is a chance of a delayed completion.

If you have any concerns regarding the legal process of your property transaction, you should contact your solicitor as soon as possible as they are best placed to advise on the best course of action.

Telephone and remote video meetings available, as well as electronic forms, call us on 01480 219699 or email enquiries@beaconwealth.co.uk