BTL Stamp Duty, at what point does it apply?

WelshRabbit

The new stamp duty rates are set to apply in April 2016 but does this mean the sale would have to be fully completed before then?

If the sale is agreed today and the paperwork finishes on the 1st March does the stamp duty apply then?

Thanks for your help!

Senior_Paper_Monitor

The changes will apply based on the transaction date (i.e completion), but when the cut off is and the detailed rules are still unavailable.

Thrugelmir

Rates apply from 1st April 2016. So the transaction has to be completed by the 31st March.

WelshRabbit

Thank you both for the clear replies. This leads me to a follow up question; would it be reasonable to make an offer on a property with the condition that the sale must complete by 31st March 2016?

Thrugelmir

WelshRabbit wrote: »

Thank you both for the clear replies. This leads me to a follow up question; would it be reasonable to make an offer on a property with the condition that the sale must complete by 31st March 2016?

You can set whatever conditions you like.

I could understand the vendor's decision to decline your offer should such a condition be attached. As it is they that have everything to lose. House purchase and sales are fraught with enough potential issues as it is. Completion dates are beyond their direct control and influence. Particularly is there a chain above them.

anselld

WelshRabbit wrote: »

Thank you both for the clear replies. This leads me to a follow up question; would it be reasonable to make an offer on a property with the condition that the sale must complete by 31st March 2016?

You can attach the condition if you like and the vendor may accept, but it is completely unenforceable until change of contracts so pointless.

Senior_Paper_Monitor

Mr T,

What is the source of the 'cut off date' (i.e 1st April) ?

I have been unable to identify any formal statement about this (was guessing at 1st or 6th based on tax year) or many other aspects.

Am desperately looking for a good point of reference on the whole SDLT issue as it raises many, many questions.

Thrugelmir

Senior_Paper_Monitor wrote: »

Mr T,

What is the source of the 'cut off date' (i.e 1st April) ?

Hi SPM,

Autumn Statement

5) Higher rates of Stamp Duty Land Tax (SDLT) will be charged on purchases of additional residential properties, such as buy to let properties and second homes, with effect from 1 April 2016.

https://www.gov.uk/government/publications/spending-review-and-autumn-statement-2015-documents

Senior_Paper_Monitor

Thanks - will reread in the morning will a clear head (I'm a morning person for detail)

Thrugelmir

Senior_Paper_Monitor wrote: »

Thanks - will reread in the morning will a clear head (I'm a morning person for detail)

Use CTL+f . Then search for stamp duty through the document. Saves reading it all.

silvercar

I read somewhere that transactions where exchange had happened before the announcement on 25 November would still be exempt.