Stamp Duty Changes

pbircham0502

Hi!

Me and my partner are in the process of buying our first house, we have just had our mortgage offer approved and the process with solicitors is already underway (with proposed exchange in December and Exchange in January although this feels tight).

Currently under the rules we'll need to be paying 8750 in Stamp Duty (The house sale is agreed at £475,000).

If on Wednesday a Stamp Duty pause/cut is announced - will we be able to take advantage of it? Or will it not come into effect until the new year?

Grumpy_chap

pbircham0502 said:

Hi!

Me and my partner are in the process of buying our first house, we have just had our mortgage offer approved and the process with solicitors is already underway (with proposed exchange in December and Exchange in January although this feels tight).

Currently under the rules we'll need to be paying 8750 in Stamp Duty (The house sale is agreed at £475,000).

If on Wednesday a Stamp Duty pause/cut is announced - will we be able to take advantage of it? Or will it not come into effect until the new year?

Nobody knows within these forums (assuming neither Rachel or Kier contribute).

AIUI, Stamp Duty rates applicable are usually the rates in force at the date of Exchange of Contracts.  If there is a change to Stamp Duty that works in your favour and comes into force at some date in the future, would you not simply delay Exchange of Contracts until after that future date?

EssexHebridean

Stamp duty changes usually get put into place with immediate effect - otherwise they risk screwing over the housing market by people slamming the brakes on in transactions already underway. In other words, exactly what is suggested above you would do! 

Discountark91

That's a tight timeline! We went through something similar when we bought in Ilford earlier this year and the stamp duty timing was stressful. Our local Ilford estate agent was brilliant though, they kept pushing things along and made sure all parties were coordinated to hit the deadline we needed.

If the changes are announced Wednesday, they usually take effect immediately to avoid a rush, but your solicitor will know for certain. At £475k you're right on that threshold so even a small change could save you a few grand. I'd get on the phone to your estate agent and solicitor first thing Thursday morning if anything's announced, they'll need to move quickly to make sure completion happens under the new rules if it benefits you. Good luck with it!

harlequinnyc

It seems all the talk of abolishing stamp duty before the budget, was just that. Ms. Allsopp will be fuming.