New Stamp duty

joefirestevenson

In the processes of buying a new build for £412000 as first time buyers. We have exchanged but not due to complete until October 31st. We have paid our 5% deposit so far to the solicitors. Do we now not have to pay the stamp duty? Or are we tied into paying the stamp duty? Many thanks 

SDLT_Geek

joefirestevenson said:

In the processes of buying a new build for £412000 as first time buyers. We have exchanged but not due to complete until October 31st. We have paid our 5% deposit so far to the solicitors. Do we now not have to pay the stamp duty? Or are we tied into paying the stamp duty? Many thanks 

Lucky you.  The rules which apply are those in effect at completion.

raff_erty

SDLT_Geek said:

joefirestevenson said:

In the processes of buying a new build for £412000 as first time buyers. We have exchanged but not due to complete until October 31st. We have paid our 5% deposit so far to the solicitors. Do we now not have to pay the stamp duty? Or are we tied into paying the stamp duty? Many thanks 

Lucky you.  The rules which apply are those in effect at completion.

I think you answered my question. We completed last Friday but are yet to fill out the SDLT1 Stamp Duty Land Tax Return form and were hoping maybe that would mean we could slip under the wire. Looks like not. Nothing to be done about it but ooft, £11,000 is a chunk of money to know you've missed out on still having as cash in your pocket by a week.

london21

joefirestevenson said:

In the processes of buying a new build for £412000 as first time buyers. We have exchanged but not due to complete until October 31st. We have paid our 5% deposit so far to the solicitors. Do we now not have to pay the stamp duty? Or are we tied into paying the stamp duty? Many thanks 

Lucky you prior to today's announcement would have been stamp duty of £5600
Completion today or later stamp duty = £0

julicorn

raff_erty said:

SDLT_Geek said:

joefirestevenson said:

In the processes of buying a new build for £412000 as first time buyers. We have exchanged but not due to complete until October 31st. We have paid our 5% deposit so far to the solicitors. Do we now not have to pay the stamp duty? Or are we tied into paying the stamp duty? Many thanks 

Lucky you.  The rules which apply are those in effect at completion.

I think you answered my question. We completed last Friday but are yet to fill out the SDLT1 Stamp Duty Land Tax Return form and were hoping maybe that would mean we could slip under the wire. Looks like not. Nothing to be done about it but ooft, £11,000 is a chunk of money to know you've missed out on still having as cash in your pocket by a week.

The maximum saving is £2,500 if that makes you feel any better. Still nice to have, but not as big a difference as your full £11k. 

raff_erty

julicorn said:

raff_erty said:

SDLT_Geek said:

joefirestevenson said:

In the processes of buying a new build for £412000 as first time buyers. We have exchanged but not due to complete until October 31st. We have paid our 5% deposit so far to the solicitors. Do we now not have to pay the stamp duty? Or are we tied into paying the stamp duty? Many thanks 

Lucky you.  The rules which apply are those in effect at completion.

I think you answered my question. We completed last Friday but are yet to fill out the SDLT1 Stamp Duty Land Tax Return form and were hoping maybe that would mean we could slip under the wire. Looks like not. Nothing to be done about it but ooft, £11,000 is a chunk of money to know you've missed out on still having as cash in your pocket by a week.

The maximum saving is £2,500 if that makes you feel any better. Still nice to have, but not as big a difference as your full £11k. 

Ooo how does the maximum saving work? We paid £16,250 stamp duty. The updated MSE Stamp Duty calculator suggests that the Stamp Duty to pay would now be £5,000, based on the new mini budget.

julicorn

raff_erty said:

julicorn said:

raff_erty said:

SDLT_Geek said:

joefirestevenson said:

In the processes of buying a new build for £412000 as first time buyers. We have exchanged but not due to complete until October 31st. We have paid our 5% deposit so far to the solicitors. Do we now not have to pay the stamp duty? Or are we tied into paying the stamp duty? Many thanks 

Lucky you.  The rules which apply are those in effect at completion.

I think you answered my question. We completed last Friday but are yet to fill out the SDLT1 Stamp Duty Land Tax Return form and were hoping maybe that would mean we could slip under the wire. Looks like not. Nothing to be done about it but ooft, £11,000 is a chunk of money to know you've missed out on still having as cash in your pocket by a week.

The maximum saving is £2,500 if that makes you feel any better. Still nice to have, but not as big a difference as your full £11k. 

Ooo how does the maximum saving work? We paid £16,250 stamp duty. The updated MSE Stamp Duty calculator suggests that the Stamp Duty to pay would now be £5,000, based on the new mini budget.

All they've done is raise the 0% threshold from £125k to £250k, there is no change to any of the other bands. So on any purchase over £250k you'd save £2.5k in stamp duty. Even if you bought a house worth £5 million, you'd still only save £2.5k.

julicorn

Also, the calculator appears to be working fine - I presume you might have accidentally ticked that you're a first time buyer, that would explain the difference? @raff_erty


Actually, I just realised that if you actually ARE a first time buyer but bought a home for over £500k, then under the previous rules you wouldn't have benefit from the reduced rates, but now you would - sorry, I hadn't considered that scenario! 

Alter_ego

All they've done is raise the 0% threshold from £125k to £250k, there is no change to any of the other bands. So on any purchase over £250k you'd save £2.5k in stamp duty. Even if you bought a house worth £5 million, you'd still only save £2.5k.

Didn't they adjust the threshold for FTB's?

Flugelhorn

julicorn said:

raff_erty said:

julicorn said:

raff_erty said:

SDLT_Geek said:

joefirestevenson said:

In the processes of buying a new build for £412000 as first time buyers. We have exchanged but not due to complete until October 31st. We have paid our 5% deposit so far to the solicitors. Do we now not have to pay the stamp duty? Or are we tied into paying the stamp duty? Many thanks 

Lucky you.  The rules which apply are those in effect at completion.

I think you answered my question. We completed last Friday but are yet to fill out the SDLT1 Stamp Duty Land Tax Return form and were hoping maybe that would mean we could slip under the wire. Looks like not. Nothing to be done about it but ooft, £11,000 is a chunk of money to know you've missed out on still having as cash in your pocket by a week.

The maximum saving is £2,500 if that makes you feel any better. Still nice to have, but not as big a difference as your full £11k. 

Ooo how does the maximum saving work? We paid £16,250 stamp duty. The updated MSE Stamp Duty calculator suggests that the Stamp Duty to pay would now be £5,000, based on the new mini budget.

All they've done is raise the 0% threshold from £125k to £250k, there is no change to any of the other bands. So on any purchase over £250k you'd save £2.5k in stamp duty. Even if you bought a house worth £5 million, you'd still only save £2.5k.

how about if they were a FTB, they save more

cheekymonkeytoo

Julicorn - isnt it the case that higher bands have changed and there is no longer a 2% band which was £250k.  £125k is now moved to nil rate and £125k is now 5% from 2%.  Not for first tme buyers tho.

Helps lower price house buyers of course.  I think that correct.