Stamp Duty Holiday Ends 30 June 2021
No doubt all conveyancers are aware, but it is worth a reminder for anyone working in property. The current stamp duty holiday, which started in July 2020, comes to an end on 30 June 2021, and it will be imperative to manage expectations around completion and whether this will be possible before the end of the month.
As a reminder, this only affects property that is under £500,000 but could reduce the bill by £15,000 so parties will no doubt be pushing for completion. In England, the holiday will be followed by a tapered rate until the end of September, but if the property is in Wales there is a hard end date of 30 June.
To assist practitioners, the Law Society has issued guidance ahead of SDLT deadlines, including recommending that firms consider a policy of no completions after 20 June, and warning clients of the position should completion overrun into July.
Other recommendations include (but are not limited to):
Full and open communication including seeking explicit instructions as to whether parties wish to proceed with a transaction if completion moves past 30 June;
Reminding everyone involved of all the moving pieces in a transaction including but not limited to lenders and other parties in the chain who may not be affected by the same deadlines;
Considering tax implications and recommending independent advice;
Some lenders may have imposed conditions including that a transaction may only continue if the SDLT concession is possible.
Posted on 10 June, 2021 by Ortolan