WHAT IS THE STAMP DUTY HOLIDAY?
Stamp Duty Land Tax (SDLT) is a tax paid by buyers of UK properties. Back in summer 2020 the UK government temporarily increased the minimum purchase price at which stamp duty is usually paid to £500,000 for residential properties purchased in England and Northern Ireland.
This tax relief was initially to last until the end of March 2021. The UK government has now extended the tax relief until the end of June 2021, following which the starting price at which stamp duty is usually payable will drop to £250,000 until the end of September 2021, before returning to the pre-Covid-19 level of £125,000.
Accordingly, for purchases completing on or before the end of June 2021 there is usually no SDLT payable by a buyer purchasing their main residence in England and Northern Ireland, with a purchase price of up to £500,000. For example, before this relief was introduced, if a house was purchased for £500,000 the stamp duty liability would usually be £15,000. Currently, the same transaction would attract no stamp duty for the purchaser.
The relief is intended to boost the UK property market, due to a significant drop in house prices for four months in a row in early 2020.
HOW HAS THE PANDEMIC AFFECTED CONVEYANCING?
The SDLT, in tandem with various lockdowns dictating when people can and cannot move, coupled with a minor exodus from those in more built-up and busy areas towards the quieter shores of south Dorset, we have seen a record number of open conveyancing cases at Nantes.
The pandemic has affected everyone involved in conveyancing transactions. Be it estate agents having to adapt to virtual viewings, having meetings/taking instructions for clients over the telephone instead of face-to-face appointments in the office, or a switch away from physical documents and toward electronic submissions in order to reduce physical contact and keep everyone safe. The wait for getting local search results back from the land registry has increased dramatically due to a backlog, causing delays. Another example of the difficulties we’ve faced is having to spend significantly longer than usual on hold to mortgage lenders, eating up valuable time on a daily basis. Often these things are out of our control, but we appreciate your patience and you should feel safe in the knowledge that we at Nantes have been doing everything we can to hasten the process.
HOW HAS THE PANDEMIC AFFECTED CONVEYANCING?
The SDLT, in tandem with various lockdowns dictating when people can and cannot move, coupled with a minor exodus from those in more built-up and busy areas towards the quieter shores of south Dorset, we have seen a record number of open conveyancing cases at Nantes.
The pandemic has affected everyone involved in conveyancing transactions. Be it estate agents having to adapt to virtual viewings, having meetings/taking instructions for clients over the telephone instead of face-to-face appointments in the office, or a switch away from physical documents and toward electronic submissions in order to reduce physical contact and keep everyone safe. The wait for getting local search results back from the land registry has increased dramatically due to a backlog, causing delays. Another example of the difficulties we’ve faced is having to spend significantly longer than usual on hold to mortgage lenders, eating up valuable time on a daily basis. Often these things are out of our control, but we appreciate your patience and you should feel safe in the knowledge that we at Nantes have been doing everything we can to hasten the process.
If you would like any further information of a quotation for a sale, purchase or any other conveyancing matter please do not hesitate to contact us via telephone on 01305 771000.
Petition to extend SDLT holiday: https://petition.parliament.uk/petitions/550545
Note; whilst we endeavour to complete your transaction before March 31st, this article offers no guarantee that this will happen. Nantes will not be liable for any loss suffered by not completing the transaction before the SDLT returns.
