WHAT IS THE STAMP DUTY HOLIDAY?

The Stamp Duty Land Tax (SDLT) is a tax usually applied on the sale of properties. The Government has announced a break on collecting this tax up until March 31, 2021; there is no SDLT for the sale of a main residence property in England and Northern Ireland, up to the value of £500,000.

For example, if a house were sold outside of this payment holiday for £500,000, a payment of £10,000 would be due in SDLT. However due to the current payment holiday, you would be expected to pay £0 in SDLT if you were to sell your property for £500,000 before March 31, 2021.

SAVINGS FOR PROPERTIES VALUED OVER £500,000

Due to the SDLT calculation working in a similar way to progressive tax bands, there will be savings for properties valued above £500,000 - with you paying a set percentage of the sale price above a certain value, with the percentage increasing with the value of the property.

For example, if you were to sell your property during the payment holiday for £865,000, the total SDLT due would be £33,250, whereas if sold during the payment holiday, only £18,250 would be due.

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 or call 01305 771000.

Find out more about the petition to extend SDLT holiday here.

Note: Whilst we endeavour to complete your transaction before March 31, 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.