Stamp Duty Land Tax Holiday
Stamp Duty Land Tax Holiday As you are no doubt aware, recent government changes extended the Stamp Duty holiday which means that no Stamp Duty will become payable for many transactions and will be significantly reduced on others.
However, property transactions are taking longer than usual. Delays are caused by many factors; busy lenders and local authorities, inundated conveyancers, sudden changes in client circumstances, backlogs at the Land and Probate Registries, and delays in the divorce courts, etc.
The current national average transaction time is now 18-20 weeks (nearly 5 months). We will endeavour to improve on this average on as many of our transactions as is possible, but please note that we cannot guarantee the time your transaction will take. This means that if your purchase does not complete on or before 31st June 2021, you will have to pay Stamp Duty at the intermediate reduced rates. If you then don’t complete prior to the 30th September you will revert to and pay Stamp Duty under the previous rules. We cannot provide any guarantee that you will complete before the deadline and you should proceed on the basis that completion is likely to be after the end of the SDLT holiday. We cannot accept any liability to you if your completion is after the end of the Stamp Duty Holiday and you have to pay additional SDLT as a result. Experience suggests that there is rarely such thing as a “simple transaction” and as we get nearer the deadline, it is inevitable that stress and frustration will become greater for those involved in the buying and selling of property.
We are advising all our clients and potential clients to be aware of this issue and to be realistic. “Plan for the worst” by making sure that you have funds available to pay any additional Stamp Duty should that become necessary. You may wish to consider renegotiating the purchase price if completion is not before the end of June. “