SDLT holiday is over
A number of coronavirus support schemes came to an end in September, including the SDLT holiday. What does this mean for transactions which have not yet completed?
The SDLT holiday in England initially ran from 8 July 2020 to 31 March 2021, increasing the 0% band for residential properties from £125,000 to £500,000. It was then extended until 30 June 2021. However, rather than abruptly returning to £125,000, there was a tapering period from 1 July 2021 where the 0% band became £250,000. This ended on 30 September 2021. But what is the SDLT position if a buyer has exchanged contracts before 30 September, but completion doesn’t take place until later on?
The date that triggers the SDLT charge is the completion date, not the date of exchange (which is generally the most important date when looking at capital gains tax). This means that the 0% band is limited to £125,000. Of course, if the individual is a first time buyer, the 0% band is £300,000 and so this may take the sting out of the holiday ending to a certain degree. There is a similar relief in Scotland, though the enhanced 0% band is £175,000. Wales has no first time buyer relief, but the standard 0% is a more generous £180,000 in any case.
Related Topics
-
Should you use simplified expenses?
The flat rate expense you can claim for business journeys if you’re self-employed has increased to 55p per mile. Can you use simplified expenses for motoring costs and is it more tax efficient to do so?
-
HMRC targets smaller tax debts
HMRC is stepping up collection of lower‑value tax debts, signalling a firmer approach to long‑overdue liabilities while encouraging earlier engagement. Direct recovery from bank and building society accounts has been re‑introduced on a trial basis, alongside a government consultation on HMRC powers and tax administration. What are the key points to be aware of?
-
New digital process for NI refunds
HMRC has introduced an online service to claim a refund of Class 1 NI contributions but not everyone can use it. What can you do if you've paid too much NI?