Stamp Duty - First Time Buyers

strawberries1

Hopefully the announcement on the 22nd will say with immediate effect so completions from the 22nd will not incure stamp duty!!

lika_86

Stamp duty is paid by your solicitor after completion. Therefore if there is a rate cut before you complete then you will benefit.

When the rate was cut last it was effective from midnight that day I believe. Given the uncertainty it may be sensible to delay exchange (and therefore a fixed completion date) until after the announcement.

_CC_

googler wrote: »

The implementation date may be the date of announcement, but most likely not.

I'm pretty sure the last time there was a stamp duty holiday it was effective as of mid-night.

Implementations periods are understandably more appropriate for raises, such as the 3% surcharge, not cuts.

Who knows if it will happen, but it has been specifically briefed to the FT from aides: https://www.ft.com/content/2b0843ec-c629-11e7-b2bb-322b2cb39656

If you complete after the date it is brought in, you would benefit.

smem18

Hi, I'm sorry that some people have been rude to you on here. I think you asked a personally valid question that I also had in my head a week ago. I came on here and found a different post that had more helpful polite responses that answered my question!

But anyway - first of all, nobody can say for sure what will be announced or what will happen! We can try and make some educated guesses based on history but do bear in mind they are just that - complete guesses.

So with that in mind - the last time there was a stamp duty "holiday" was 2010. They announced it in the budget on 25th March and the holiday was effective as 00:01 on 25th March (so midnight the same day) until 25th March 2012. Time-wise: As long as you completed after 00:01 on 25th March or after, you qualified for the paybreak.

But there was a catch: the deal was that there was no stamp duty on purchases up to £250,000. So if your property cost more than this, you would be paying stamp duty. You also had to be a first time buyer and buying the property as your only or main home (so no buy to let allowed). If the property cost over £250,000, the stamp duty rate did not change at all and there was no difference or benefit

Stamp duty is not payable until day of completion. SO in 2010, if you had already handed over stamp duty to your solicitor before your date of completion, you could get your stamp duty back if you completed after 00:01 on 25th March. You simply asked for the stamp duty to be returned to you!

I am also about to complete, very likely next week, on my first home and just in case, won't complete until after the 22nd November. But my property is costing £320k so I am not holding my breath! If there is any sort of stamp duty break, I think there will be rules like there were in 2010 and there will be a property value threshold. But still, I'm crossing my fingers and theres no way I will agree to complete before 22nd just in case!

I found this article helpful to see what happened before in 2010: http://news.bbc.co.uk/1/hi/business/8585903.stm

xsor

juniordoc wrote: »

I am not completing until 1st Dec but won't be transferring any money to our solicitor for stamp duty until after 22nd Nov, just in case. Keeping my fingers crossed for a SDLT holiday for first time buyers!!!

Wouldn't that be the dream! Best Christmas yet

SuboJvR

Do people think that if they transfer their money to their solicitor ahead of completion, the solicitor will then run off with their money if it's then determined that stamp duty needn't be paid?? Puzzling

Mutton_Geoff

You haven't paid your solicitor any stamp duty, you have paid funds for completion, which will contain stamp duty at current rates. He won't pay your money to HMRC for the SDLT (stamp duty) until after completion so if, and only if, SDLT is reduced/cancelled for your purchase with immediate effect in the budget statement, then when you complete, he will refund you the surplus from funds available at completion since the money will never be sent to HMRC.