Higher Stamp Duty

ellie1999

My partner and I may have to complete on our new house before his is sold (nightmare solicitors). Would we still have to pay higher SDLT if he’s exchanged or is it completion only that avoids this?

AnotherJoe

I believe from recollection there is a 30 day grace period which if the solicitor is on the ball you should be able to take advantage of assuming the exchange - completion gap is less than that.
But check into that.

saajan_12

ellie1999 wrote: »

My partner and I may have to complete on our new house before his is sold (nightmare solicitors). Would we still have to pay higher SDLT if he’s exchanged or is it completion only that avoids this?

It is the completion date that matters, but please confirm:
1) gap between completing on the purchase and sale
2) how you're funding purchase - eg cash/mortgage

Per HMRC rules, you have 30 days to pay stamp duty on your purchase, and if you've completed on the sale by that time which entitles you to a refund on the higher rate, you can just file and pay the standard rate within 30 days of the purchase.

However, if you're buying wiht a mortgage, many lenders will require the solicitor to undertake to pay any stamp duty on the day of completion, ie you lose the 30 day grace.

SDLT_Geek

The HMRC guidance mentioning the 30 day point is here: https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm09805

ellie1999

Thanks! My partner’s solicitors aren’t giving us any timelines on his sale, it’s very frustrating which is why we’re looking at other options as everyone wants to be in by Xmas....including us!

Yes, we’ll have a mortgage. At least we can claim the refund but just means finding an awful lot of extra cash in the meantime.