Soldato
In the past when they have done stamp duty changes, they normally back date it for these exact reasons.
The nervous wait to exchange....
- Thread starter noj
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In the past when they have done stamp duty changes, they normally back date it for these exact reasons.
Soldato
I'd always go for comprehensive for peace of mind. For the risk on any house purchase, is it really worth trying to save £200. I know it adds up £200 here and there.
Soldato
Having just forked out 6k in Stamp duty, I'll be more than a little peeved if they now go and do away with it...
As well as the >£500k banding question, i wonder how this may mesh with the 3% additional rate loading for if you dont plan to directly replace your PPR? Watching with interest. There is a potential £30k saving if they unlock the additional rate to 500k too.
Soldato
Here we go..
Soldato
Increasing threshold to £500k immediately till March next year..
Great news for me - just going through the legal process now - nice 6k saved!
Hope they backdate for the peeps above.
It is as if the BBC do not vet their own text. I await the fleshing out of this cut later, but the above is not true at all and is published on the BBC live feed. They state that this will take effect on the first £500k for ALL property sales in england, but then go onto to say that the levy is paid only on txs above £125k, which is false. Crap reporting, oh well.
If they had announced today that it was to happen in autumn this would have effectively frozen the property market until then, which would have had the opposite effect they were looking for. It's a good decision imo. Saves the whole chain money and nobody has to reapply for mortgages as prices haven't changed. It will save us as FTBers still thousands. Our sellers will save over 10k.
They state in one line that this will take effect on ALL property txs, but then in the same quote state that SDLT is not payable below £125k, which is only the case if you are replacing your PPR directly, and at the same time as actually moving.
Which is true? Crap reporting unfortunately.
Which is true? Crap reporting unfortunately.
You mean this BBC quote?
"The chancellor announces a temporary holiday on stamp duty on the first £500,000 of all property sales in England and Northern Ireland, to run until 31 March next year.
He says the change will take place immediately.
The levy is paid on land or property sold for £125,000 or more – although first-time buyers pay no tax up to £300,000."
I think you are saying that the last line is misleading. Strictly speaking they should have written it in the past tense like this:
"Up until Rishi's announcement, the levy used to be paid on land or property sold for £125,000 or more – although first-time buyers paid no tax up to £300,000."
No i didnt mean that. I mean that unless you directly replace your PPR, or sell it within a timeframe to qualify for a rebate paid upon the sale (but still have to front it), you pay 3% SDLT from £0 on transactions in england.
Your revised quote is just as untrue.
Lets see how it fleshes out later
Your revised quote is just as untrue.
Lets see how it fleshes out later
Which part is untrue? I'm now doubting myself and that I have misunderstood this. I openly admit to not knowing what PPR is. By "txs" are you meaning transactions?
With the new announcement, what about properties sold for example for 600k. Do they pay 5% on 100k or 5% on the whole 600k?
Soldato
So who exchanged yesterday? 
At the moment (i use that almost in the past tense now as right now i am not clear what has actually been announced!) you only get an exemption for SDLT below £125k and avoid paying a 3% surcharge all the way from £0, if you directly replace your primary residence, at the same time as buying your new primary residence. PPR = principle primary residence (i thought a commonly known term, you have to declare this to HMRC for CGT calculations, sorry!)
For me, i would never really be directly replacing my PPR when we move, we are in the legal process of buying a new PPR right now, which is tied up in a planning dispute and appeal, but there will be crossover as there always would be for me. This means that we will need to front all of the SDLT now, which is a lot to find, and then hope that we are in a position and will be forced to offload our existing PPR within 24 months to claim the rebate. If this were to apply to the 3% loading too, then we would avoid the need to front an extra £30k on the £500k slice temporarily.
https://www.gov.uk/guidance/stamp-duty-land-tax-temporary-reduced-rates
Ah, published the detail now. Oh well, this is to be expected that it would be populist only
Ah, published the detail now. Oh well, this is to be expected that it would be populist only