stamp duty

Stamp Duty

Stamp Duty Land Tax (SDLT)

The Government's SDLT “holiday” was announced on 08.07.2020 and has been extended as follows:

  • The £500,000 nil rate band will be in place until 30th June 2021.
  • A nil rate band of £250,000 will be in place between 1st July 2021 to 30th
    September 2021.

At present, SDLT rates will revert to normal on the 1st October 2021.

Understandably, the period up to the end of the nil rate bands will become extremely stressful for all concerned - many people will be pushing for completion in the final week to try to avoid missing out on the SDLT concession.

We would like you to bear in mind the following:

  • It might be a good idea to try to avoid completing during the weeks 28.06.21 -
    30.06.2021 and 27.09.2021-30.09.2021.
  • We will do our best to liaise with the other parties involved in the process to
    mitigate any hurdles, but the speed of the transaction is not necessarily within our
    control and we cannot guarantee that transactions will complete before end
    of the relevant nil rate bands. This is especially the case where the
    transaction forms part of a chain.
  • Solicitors & Licensed Conveyancers are often the last link in the moving process.
    It is only when we have all the pieces together (which may be dependent on other
    parties) that the transaction can proceed.
  • Contracts may need to be amended to take any SDLT concession related issues
    into account e.g.
    • What happens if some people in the chain want to proceed even if they
      complete after the end of the nil rate bands and some don't.
    • Consideration needs to be given to compensation payments which may
      include unanticipated SDLT, if completion does not take place when
      expected or at all.
      ▪ Please ensure you are aware of any conditions your lender may have
      imposed in relation to the SDLT concession.
    • Evidence of funds to cover SDLT after the concession period may be
      required if the completion date is close to dates referred to above.

If you are concerned about how this may impact your sale or purchase, then please email the property team member who is dealing with your matter and they will try to respond as soon as they can.

PLEASE ALSO NOTE:

During the COVID-19 pandemic we have been working hard to maintain client care standards. However, there may be times where we cannot respond to you within the 24-hour normal response time.

We apologise in advance for any delay but would ask for your understanding during these very difficult times.

SDLT

Stamp Duty Land Tax (SDLT) must be paid to HMRC if you buy property or land over a certain amount in England and Northern Ireland:

  • Residential property - £125k
  • Non-residential land - £150k

Please note that Wales and Scotland have different policies.

For more detailed information you can go to https://www.gov.uk/stamp-duty-land-tax.

If you are buying your first home then you may be eligible for a discount if:

  • The purchase price is £500k or less
  • You, and anyone else you’re buying with, are first time buyers.

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Property Law Team

Sarah Bright

Sarah Bright

Licensed Conveyancer

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Maria Coleman

Maria Coleman

Property Paralegal

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Myron Handzij

Myron Handzij

Director & Solicitor

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