5% stamp Duty rise

Bookworm105

noddy11 said:

Peter999_2 said:

It's not fair at all Noddy11.  

Yeah it’s crazy, not much thought been given too this.

Going to pull of the sale in the morning as it’s just not viable to go though with the sale now (after other extra cost arose already this is just one too many for us).

sorry but there was a lot of speculation that SDLT would be a target tax given the way they had limited their own options and were clearly targeting "the rich"
in the context of property it is also "normal" for the SDLT cut off point on new rules to be on completion

user1977

Indeed. The Budget is when any SDLT changes happen, often coming into force immediately, and everybody had months of notice of when the Budget would be. So if a transaction was relying on SDLT being a particular rate, and you were almost ready to exchange, you should really have made more effort to get it over the line before today.

Grumpy_chap

Can anyone clarify for me - the change to SDLT is for second / additional homes.

It is just I was watching BBC Breakfast and they spoke with a Graduate about her concerns from the budget.  The lady mentioned bus fares, whether higher employer NI would make it harder for her to get a job and then the stamp duty change making it harder for her to get a first house.

The Presenter didn't correct her on SDLT so is there something that would affect FTB?  That would have far bigger impact than a change of rate for additional properties.

tizerbelle

Grumpy_chap said:

Can anyone clarify for me - the change to SDLT is for second / additional homes.

It is just I was watching BBC Breakfast and they spoke with a Graduate about her concerns from the budget.  The lady mentioned bus fares, whether higher employer NI would make it harder for her to get a job and then the stamp duty change making it harder for her to get a first house.

The Presenter didn't correct her on SDLT so is there something that would affect FTB?  That would have far bigger impact than a change of rate for additional properties.

The duty rise only affects second homes, buy-to-let residential properties, and companies purchasing residential property in England and Northern Ireland.  It will not impact a FTB purchasing a residential property as their own home.

No surprise that the presenter didn't correct her - they frequently know less than anyone else.

EssexHebridean

There have been lots of references to  the fact that SDLT will be reverting back to the lower starting threshold when the current temporary arrangement ends in the spring - that could be where the confusion is arising. This was always planned to happen, but some people assumed it might be changed in the budget, which isn't actually the case. 

noddy11

user1977 said:

 So if a transaction was relying on SDLT being a particular rate, and you were almost ready to exchange, you should really have made more effort to get it over the line before today.

I wasn’t just relying on stamp duty being a particular rate as I mention in my post it a number of other unforeseen things as well.

As for you tell me I should have made more of an effort to get over the line not sure you understand how house sales work, I’ve been trying my best to do this but the house was in probate as I mentioned above in my post not sure if you read this or choose to ignore it.

ReadySteadyPop

noddy11 said:

user1977 said:

 So if a transaction was relying on SDLT being a particular rate, and you were almost ready to exchange, you should really have made more effort to get it over the line before today.

I wasn’t just relying on stamp duty being a particular rate as I mention in my post it a number of other unforeseen things as well.

As for you tell me I should have made more of an effort to get over the line not sure you understand how house sales work, I’ve been trying my best to do this but the house was in probate as I mentioned above in my post not sure if you read this or choose to ignore it.

Other  people will also likely be pulling out of purchases, or looking for a bigger discount.

https://propertyindustryeye.com/thousands-of-purchases-could-be-abandoned-after-chancellors-surprise-stamp-duty-hike/

macman

This rise was flagged up a long time ago, certainly since the election. My conveyancer contact told me that she would not be dealing with any other business on Tues and Weds other than overseeing completions on 2nd homes, in order to beat the deadline. I find it hard to believe that your own conveyancer was not similarly aware
In your case, you were nowhere near 'down the line' or nearly ready. You haven't even exchanged, so the whole sale could still fall through anyway.
Tax changes affecting property purchases always apply at the date of completion, not exchange.

macman

Bookworm105 said:

noddy11 said:

Peter999_2 said:

It's not fair at all Noddy11.  

Yeah it’s crazy, not much thought been given too this.

Going to pull of the sale in the morning as it’s just not viable to go though with the sale now (after other extra cost arose already this is just one too many for us).

sorry but there was a lot of speculation that SDLT would be a target tax given the way they had limited their own options and were clearly targeting "the rich"
in the context of property it is also "normal" for the cut off point on new rules to be exchange of contract 

I think you mean completion, not exchange.

noddy11

macman said:

This rise was flagged up a long time ago, certainly since the election. My conveyancer contact told me that she would not be dealing with any other business on Tues and Weds other than overseeing completions on 2nd homes, in order to beat the deadline. I find it hard to believe that your own conveyancer was not similarly aware
In your case, you were nowhere near 'down the line' or nearly ready. You haven't even exchanged, so the whole sale could still fall through anyway.
Tax changes affecting property purchases always apply at the date of completion, not exchange.

😆 you have not got a clue what my situation is.