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stamp duty increase

me and my partner exchanged contracts on the 18th October and complete on the 4th november. My partner has two rental properties already. As we have exchanged on the 18th October do need to pay the higher rates of stamp duty as per the new 2024 budget. 
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Comments

  • user1977
    user1977 Posts: 15,860 Forumite
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    No, the old rates will apply.
  • p00hsticks
    p00hsticks Posts: 13,593 Forumite
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    user1977 said:
    No, the old rates will apply.
    Not sure about that - the government policy document here
    Stamp Duty Land Tax — increase to the higher rates on additional dwellings and to the single rate of tax on purchases by non-natural persons - GOV.UK
     says 

    'This measure applies to transactions with an effective date (usually the date of completion) on or after 31 October 2024.

    Where contracts are exchanged prior to 31 October 2024 but complete or are substantially performed on or after that date, transitional rules may apply'.

    but doesn;t appear to say either what those transitional rules are or the circumstances under which they will apply. 

  • AskAsk
    AskAsk Posts: 2,717 Forumite
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    This is completely unfair and ongoing transactions should be excluded from the increase.  For those in ongoing transactions, they have already budgeted for the purchase, so it is very unfair that they have to pay the extra stamp duty when they have already tied themselves into the purchase.

    Complete chaos.  I hope that transactions which have exchanged are excluded from the increase as you have no choice in the matter.
  • SDLT_Geek
    SDLT_Geek Posts: 2,652 Forumite
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    me and my partner exchanged contracts on the 18th October and complete on the 4th november. My partner has two rental properties already. As we have exchanged on the 18th October do need to pay the higher rates of stamp duty as per the new 2024 budget. 
    If under the old rules you were due to pay the 3% extra SDLT, then that will remain the case on the basis that:

    1.  You exchanged contracts on or before 30 October 2024.

    2.  The contract is not varied and

    3.  There is no change of buyer from the buyer under the contract.

    If those conditions are all met the 5% extra SDLT over standard rates should not apply, even though completion is on or after 31 October 2024.
  • GrumpyDil
    GrumpyDil Posts: 1,820 Forumite
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    Just one question OP. Are you and your partner selling an existing property that you live in as part of the transaction or is this a new house with no related sale? 
  • GrumpyDil said:
    Just one question OP. Are you and your partner selling an existing property that you live in as part of the transaction or is this a new house with no related sale? 
    We are not selling as we are currently renting 
  • SDLT_Geek
    SDLT_Geek Posts: 2,652 Forumite
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    GrumpyDil said:
    Just one question OP. Are you and your partner selling an existing property that you live in as part of the transaction or is this a new house with no related sale? 
    We are not selling as we are currently renting 
    But has your partner (he is the one owning the properties) sold / disposed of a property which he had lived in as his only or main residence within the last 3 years? 

    Or perhaps he has been renting for over 3 years?
  • SDLT_Geek said:
    GrumpyDil said:
    Just one question OP. Are you and your partner selling an existing property that you live in as part of the transaction or is this a new house with no related sale? 
    We are not selling as we are currently renting 
    But has your partner (he is the one owning the properties) sold / disposed of a property which he had lived in as his only or main residence within the last 3 years? 

    Or perhaps he has been renting for over 3 years?
    We have both been in military accommodation which has been our main residency. His two properties are both rented out and are not being sold 
  • SDLT_Geek said:
    GrumpyDil said:
    Just one question OP. Are you and your partner selling an existing property that you live in as part of the transaction or is this a new house with no related sale? 
    We are not selling as we are currently renting 
    But has your partner (he is the one owning the properties) sold / disposed of a property which he had lived in as his only or main residence within the last 3 years? 

    Or perhaps he has been renting for over 3 years?
    We have both been in military accommodation which has been our main residency. His two properties are both rented out and are not being sold 
    And no he hasn’t sold a house within the last three years 
  • SDLT_Geek
    SDLT_Geek Posts: 2,652 Forumite
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    edited 31 October at 4:02PM
    SDLT_Geek said:
    GrumpyDil said:
    Just one question OP. Are you and your partner selling an existing property that you live in as part of the transaction or is this a new house with no related sale? 
    We are not selling as we are currently renting 
    But has your partner (he is the one owning the properties) sold / disposed of a property which he had lived in as his only or main residence within the last 3 years? 

    Or perhaps he has been renting for over 3 years?
    We have both been in military accommodation which has been our main residency. His two properties are both rented out and are not being sold 
    And no he hasn’t sold a house within the last three years 
    Thanks.  So I agree that the higher rates of SDLT (previously an extra 3%, now an extra 5%) will apply to the purchase.
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