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Stamp duty budget
marksmen10
Posts: 19 Forumite
We are currently moving house and are buying / selling. We are not far from exchanging contracts. Would any changes to stamp duty in the upcoming budget affect our transaction or should we be protected as it's in progress? Thanks Mark.
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Comments
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Being "in progress" is legally meaningless - if you've exchanged before any Budget announcements then (generally!) the rules which applied at the point of exchange will apply to your transaction.1
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Yes - when making an SDLT submission two dates are asked for - the completion date which is mandatory to include, but also the contract date - which in most cases is the date of exchange. This is designed to get around issues like SDLT rules changing between exchange and completion. It's not absolutely cast iron, but I would be VERY surprised if any Chancellor would put in place a change to SDLT which could potentially leave people in breach of an obligation to complete.🎉 MORTGAGE FREE (First time!) 30/09/2016 🎉 And now we go again…New mortgage taken 01/09/23 🏡
Balance as at 01/09/23 = £115,000.00 Balance as at 31/12/23 = £112,000.00
Balance as at 31/08/24 = £105,400.00 Balance as at 31/12/24 = £102,500.00
Balance as at 31/08/25 = £ 95,450.00
£100k barrier broken 1/4/25SOA CALCULATOR (for DFW newbies): SOA Calculatorshe/her1 -
Not sure that is true, surely you need to complete before any changes in gov come about to continue in past regs.user1977 said:Being "in progress" is legally meaningless - if you've exchanged before any Budget announcements then (generally!) the rules which applied at the point of exchange will apply to your transaction.0 -
No, there are always transitional arrangements which apply. Otherwise what do you think would happen if you are stuck in a contract to buy but now can't afford the new rate of stamp duty?TheJP said:
Not sure that is true, surely you need to complete before any changes in gov come about to continue in past regs.user1977 said:Being "in progress" is legally meaningless - if you've exchanged before any Budget announcements then (generally!) the rules which applied at the point of exchange will apply to your transaction.1 -
legalisation defines the effective date for SDLT as the completion date, not the contract exchange date.
SDLTM07600 - Scope: When is Stamp Duty Land Tax (SDLT) chargeable: Effective date of a transaction FA03/S119 - HMRC internal manual - GOV.UK
historically however when budgets change tax rules there is normally a transition period allowed for contracts in progress at the budget date. Contract exchange date may therefore be used in that circumstance to demarcate the cutoff point of old and new rules.1 -
The "effective date" isn't necessarily the reference point for which rates/bands/reliefs apply to the transaction though.Bookworm105 said:there is no ambiguity about this at all
legalisation defines the effective date for SDLT as the completion date, not the contract exchange date.
SDLTM07600 - Scope: When is Stamp Duty Land Tax (SDLT) chargeable: Effective date of a transaction FA03/S119 - HMRC internal manual - GOV.UK
For example, here's the handbook page mentioning transitional arrangements for the abolition of multiple dwelling relief (from the March 2024 Budget): SDLTM29902 - Abolition of multiple dwellings relief for SDLT (01 June 2024): Exchange of contracts on or before 6 March 2024 - HMRC internal manual - GOV.UK (www.gov.uk)1 -
I note you deleted the rest of my comment which mentioned transition periods and a budgetuser1977 said:
The "effective date" isn't necessarily the reference point for which rates/bands/reliefs apply to the transaction though.Bookworm105 said:there is no ambiguity about this at all
legalisation defines the effective date for SDLT as the completion date, not the contract exchange date.
SDLTM07600 - Scope: When is Stamp Duty Land Tax (SDLT) chargeable: Effective date of a transaction FA03/S119 - HMRC internal manual - GOV.UK
For example, here's the handbook page mentioning transitional arrangements for the abolition of multiple dwelling relief (from the March 2024 Budget): SDLTM29902 - Abolition of multiple dwellings relief for SDLT (01 June 2024): Exchange of contracts on or before 6 March 2024 - HMRC internal manual - GOV.UK (www.gov.uk)0 -
No, you added to it while my post was being composed....Bookworm105 said:
I note you deleted the rest of my comment which mentioned transition periods and a budgetuser1977 said:
The "effective date" isn't necessarily the reference point for which rates/bands/reliefs apply to the transaction though.Bookworm105 said:there is no ambiguity about this at all
legalisation defines the effective date for SDLT as the completion date, not the contract exchange date.
SDLTM07600 - Scope: When is Stamp Duty Land Tax (SDLT) chargeable: Effective date of a transaction FA03/S119 - HMRC internal manual - GOV.UK
For example, here's the handbook page mentioning transitional arrangements for the abolition of multiple dwelling relief (from the March 2024 Budget): SDLTM29902 - Abolition of multiple dwellings relief for SDLT (01 June 2024): Exchange of contracts on or before 6 March 2024 - HMRC internal manual - GOV.UK (www.gov.uk)0
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