STAMP DUTY HOLIDAY

Nwhomebuyer

So, the government has recently announced an immediate stamp duty holiday from today until March next year. 
We are currently in the process of buying a new build house but have not exchanged contracts yet. One of the incentives for this new build was that the builders will give us £5000 towards stamp duty and £500 towards our legal costs. Given we don't have to pay the lump of the stamp duty anymore (calculations come up to around £780 now as house is £515k) Do you think we are in a position to negotiate with the builders on the £5000 they're not paying towards stamp duty anymore - or do you think its something they'll just cancel? 

GixerKate

You can but ask.

Why not give them a ring and see if you can negotiate a bit off the purchase price instead of the stamp duty as that is now not valid?

One thing to keep in mind though is your completion date, is there any chance it could be pushed past the end of March next year? 

Nwhomebuyer

GixerKate said:

You can but ask.

Why not give them a ring and see if you can negotiate a bit off the purchase price instead of the stamp duty as that is now not valid?

One thing to keep in mind though is your completion date, is there any chance it could be pushed past the end of March next year? 

Thanks for your reply - the house is pretty much complete, final touches are being done right now. I guess I will call in and check with them  

foxy-stoat

The purchase price would of been inflated to include for the discount - ask you will probably get it off the price.

Nwhomebuyer

foxy-stoat said:

The purchase price would of been inflated to include for the discount - ask you will probably get it off the price.

That's true - I'll ask them. Thanks

SharkMoney

Does the stamp have to be paid after the holiday???

george4064

SharkMoney said:

Does the stamp have to be paid after the holiday???

The stamp duty land tax holiday takes effect from today (8th July 2020) to 31st March 2021, the stamp duty liability is determined when you exchange contracts.

davidmcn

SharkMoney said:

Does the stamp have to be paid after the holiday???

No, it isn't a deferral, it's a relief. Apart from anything else HMRC would never trust anyone to come up with the money months after completion.

j_s2020

george4064 said:

the stamp duty liability is determined when you exchange contracts.

Would you mind expanding on this point please? If the stamp duty has decreased since contracts were exchanged, who would benefit from the decrease? The builder or the buyer?

MobileSaver

george4064 said:

 the stamp duty liability is determined when you exchange contracts.

The gov.uk site says liability is based on when you purchase (i.e. Completion) and not on Exchange. Do you have a reference that contradicts the gov.uk site?

https://www.gov.uk/guidance/stamp-duty-land-tax-temporary-reduced-rates

maryconnolly

My son completed on a property on Friday in London and paid stamp duty under the old calculation.  Really disappointed for him that there had been no media coverage of possible change to stamp duty as he would have delayed the completion to this week.  He was under pressure from the seller to complete by 3rd July and has lost out and paid £19.5 k in stamp duty as opposed to £4.5k under the new rules. It took him several years to save for his deposit and fees. This was his first home purchase and he had already lost over £1k in fees and survey costs due to the first property he was hoping to buy falling through due to Covid-19. Shame the reduction wasn't back-dated to when the markets re-opened as there will be lots in his position. We need Martin to start a campaign to get this decision back-dated to help homeowners who supported the markets by completing as soon as the markets opened and didn't pull out due to Covid-19.