STAMP DUTY
HOLIDAY DEADLINE
LATEST UPDATE - 3rd March 2021
The official Stamp Duty Holiday deadline has been extended and please see the link below for the latest Government information:
https://www.gov.uk/stamp-duty-land-tax/residential-property-rates
Question - Will I complete before the end of June, if I instruct in March?
Please see this link
The official Stamp Duty Holiday deadline has been extended and please see the link below for the latest Government information:
https://www.gov.uk/stamp-duty-land-tax/residential-property-rates
Question - Will I complete before the end of June, if I instruct in March?
Please see this link
BACKGROUND
On 8 July 2020 the Chancellor of the Exchequer announced a Stamp Duty Land Tax (SDLT) holiday, which resulted in a very large increase in Residential Conveyancing transactions across the UK, that in turn is has resulted in delays incurred by mortgage lenders, surveyors, search providers and any law firms who have taken on too much work – all of these external factors are outside of our direct control and so there is a risk that the SDLT holiday deadline may not be achieved, compounded by the multiple additional lockdowns in November and at across 2021.
Even back in early October 2020, experts were predicting a very challenging period for all involved in the Conveyancing process that may impact on the payment of Stamp Duty by clients.
Please see the links below for more information.
https://www.todaysconveyancer.co.uk/main-news/expert-predicts-fraught-messy-end-stamp-duty-land-tax-holiday/
https://www.estateagenttoday.co.uk/breaking-news/2020/10/conveyancers-blunt-message-to-agents--be-patient-dont-nag-us
https://www.todaysconveyancer.co.uk/main-news/conveyancing-bodies-unite-manage-homebuyers-expectations/
As a firm, I can assure you that the team and I are all working towards the same goal as you, as we want nothing more than a happy client with keys to their new home.
However, I thought it worthwhile in letting you know about the numerous factors outside of our control that may prevent completion by the deadline and these include:
On 8 July 2020 the Chancellor of the Exchequer announced a Stamp Duty Land Tax (SDLT) holiday, which resulted in a very large increase in Residential Conveyancing transactions across the UK, that in turn is has resulted in delays incurred by mortgage lenders, surveyors, search providers and any law firms who have taken on too much work – all of these external factors are outside of our direct control and so there is a risk that the SDLT holiday deadline may not be achieved, compounded by the multiple additional lockdowns in November and at across 2021.
Even back in early October 2020, experts were predicting a very challenging period for all involved in the Conveyancing process that may impact on the payment of Stamp Duty by clients.
Please see the links below for more information.
https://www.todaysconveyancer.co.uk/main-news/expert-predicts-fraught-messy-end-stamp-duty-land-tax-holiday/
https://www.estateagenttoday.co.uk/breaking-news/2020/10/conveyancers-blunt-message-to-agents--be-patient-dont-nag-us
https://www.todaysconveyancer.co.uk/main-news/conveyancing-bodies-unite-manage-homebuyers-expectations/
As a firm, I can assure you that the team and I are all working towards the same goal as you, as we want nothing more than a happy client with keys to their new home.
However, I thought it worthwhile in letting you know about the numerous factors outside of our control that may prevent completion by the deadline and these include:
- Covid - The impact on COVID-19 on the multitude of other people involved in the Conveyancing process.
- Searches – Ongoing delays in Searches at local councils, so of whom are still dealing with high backlogs due to Covid.
- Lenders & surveyors - Ongoing delays with the Mortgage lenders and surveyors.
- Other Law firms - Delays caused by other Law Firms, some of whom we know have taken on too much work.
- Chains - If your purchase is in a chain, then the delays above unfortunately stack up for each property in the chain.
WHAT WE HAVE DONE - TO HELP MANAGE THESE TWO UNPRECEDENTED EVENTS (COVID AND THE STAMP DUTY HOLIDAY).
- Caseload - We have deliberately reduced our caseload levels so we are not overloaded.
- Additional hours – Our dedicated team will pull out all of the stops to ensure your file progresses and this includes working beyond normal hours.
WHAT YOU CAN DO TO HELP
- Prompt – Please be prompt in answering any questions posed by DP Conveyancing.
- Plan for the worst – As we get closer to the deadline, please work on the worst case scenario that Stamp Duty will need to be paid.
- Removals – The end of the Stamp Duty holiday will be an unprecedented busy period for all involved in house moves, so please ensure you plan ahead with one or more removals firms.
- Be flexible – When buying a house, you may want X,Y and Z to be in place, but you may need to be flexible in order to smooth out your purchase and not introduce any delays.
WHAT WE ASK YOU NOT TO DO
- Please do not assume the SDLT deadline will be met - Linked to the points above, please do not assume that your Purchase will complete by the deadline, even if the Conveyancing started many months before the deadline and you are at the final stages of your Purchase. Each file is unique with delays incurred as described, and it is possible that issues or delays may emerge at the very end of the process. Please remember that we are acting in your best interests in your Purchase and we are here to protect you.
- Please do not assume you will make he saving on the Stamp Duty – This again relates to the points above, and you should work on the worse-case scenario and ensure you DO have the money to move house should you end up having to pay the Stamp Duty.
- Please do not constantly chase us - Although it may be tempting, please do not ring us daily for progress updates as this will only slow down your Conveyancer and other staff, reducing the likelihood of completing by the SDLT deadline.
HOW MUCH WILL I HAVE TO PAY - IF THE DEADLINE IS MISSED
Please refer to the Government link below for you to calculate the exact amount.
Note: You will need to amend the Effective date of your transaction to force the calculator to calculate using the rates beyond the SDLT holiday.
https://www.gov.uk/stamp-duty-land-tax/residential-property-rates
As we cannot guarantee that your conveyancing transaction(s) will complete by the deadline, we do not accept liability for any direct, indirect or consequential loss you may suffer as a result of that being the case.
As always please note that we do not give tax advice and strongly recommend that you take specialist accountant/tax advice regarding your matter(s).
Please refer to the Government link below for you to calculate the exact amount.
Note: You will need to amend the Effective date of your transaction to force the calculator to calculate using the rates beyond the SDLT holiday.
https://www.gov.uk/stamp-duty-land-tax/residential-property-rates
As we cannot guarantee that your conveyancing transaction(s) will complete by the deadline, we do not accept liability for any direct, indirect or consequential loss you may suffer as a result of that being the case.
As always please note that we do not give tax advice and strongly recommend that you take specialist accountant/tax advice regarding your matter(s).
