SDLT Increase

ReadySteadyPop

michael1234 said:

sammyjammy said:

In some ways the OPs reaction is what the government is hoping for, either more money in SDLT for the countries coffers or another house for a person to live in rather than have as a second home.  

Ahh but its not usually a second home. The most common use case is a second property - i.e. buy2let. So that would be one less rental on the market. The person who might have rented that property is unlikely to be able to afford to buy. So as I see it the net effect is downward pressure on property prices (good many would say) and upward pressure on rentals.

Downward pressure on rentals will come when the new minimum wage rules make loads of smaller businesses shut up shop, loads of younger people are going to go back to the bunk of mum and dad and loads of landlords will be in trouble, especially if they borrowed too much.

[Deleted User]

ReadySteadyPop said:

michael1234 said:

sammyjammy said:

In some ways the OPs reaction is what the government is hoping for, either more money in SDLT for the countries coffers or another house for a person to live in rather than have as a second home.  

Ahh but its not usually a second home. The most common use case is a second property - i.e. buy2let. So that would be one less rental on the market. The person who might have rented that property is unlikely to be able to afford to buy. So as I see it the net effect is downward pressure on property prices (good many would say) and upward pressure on rentals.

and loads of landlords will be in trouble

A familiar turn of phrase

Bigphil1474

OP, how can you be liable for £30k SDLT on a £355k purchase? Doesn't add up. 5% on anything over £250k, plus 5% on the total purchase as it's a second property only comes to about £23k. Unless I'm missing something?

EssexHebridean

If the £355k additional property purchase had exchanged yesterday, the calculator tells me £15,900
From today, £23k is spot on. 

SonnyH

Bigphil1474 said:

OP, how can you be liable for £30k SDLT on a £355k purchase? Doesn't add up. 5% on anything over £250k, plus 5% on the total purchase as it's a second property only comes to about £23k. Unless I'm missing something?

We're currently non-resident. House we're buying is for ourselves for a future main residence near to my parents as they get older.  Unfortunately not likely to be within the next three years though (or we could claim some of it back).

Mutton_Geoff

For anyone considering that the seller should meet the extra cost, what if the tax supplement had been scrapped? Would you have gone back to the vendor with a higher offer?

MeteredOut

Mutton_Geoff said:

For anyone considering that the seller should meet the extra cost, what if the tax supplement had been scrapped? Would you have gone back to the vendor with a higher offer?

No, but the seller could ask for more. It's simply the flip side of the same consideration.

Bookworm105

Mutton_Geoff said:

For anyone considering that the seller should meet the extra cost, what if the tax supplement had been scrapped? Would you have gone back to the vendor with a higher offer?

research after the fact suggests that when FTB SDLT relief was changed back in 2010 there were 2 impacts observed:
a) FTB went looking for more expensive houses than they would otherwise have done 
b) the majority of the tax reduction was absorbed into higher prices

Evaluating the impact of Stamp Duty Land Tax First Time Buyers' Relief

KiwiCoop

SDLT_Geek said:

KiwiCoop said:

It could be worse.  You could have bought a second house at auction yesterday - no get-out for me!

If you bought in a traditional auction, so that there is a binding contract, you should not have to pay the 5% surcharge, providing the contract is not varied and you stick to the same buyer.  The draft legislation for the transitional provisions is here: https://assets.publishing.service.gov.uk/media/67209bf934853837d7fc40f8/SDLT_draft_autumn_2024.pdf

In fact exchanging contracts today can work for the transitional provisions.

Many thanks Geek (and EssexH).  Only after I posted did I think about that.  I hadn't signed any contract (auctions being mostly online these days) but of course the date on the contract will be 29th, so all being well the uplift won't apply.  Phew.