The stamp duty deadline is the deadline by which you must finish your application in order to receive a benefit.
STAMP DUTY land tax applies to all property purchases in the UK, but the current break means that millions of people can climb on the property ladder without paying thousands more – but you must have completed to claim the exemption.
Chancellor Rishi Sunak announced a temporary exemption from stamp duty on all property sales in England and Northern Ireland for the first £500,000. However, stamp duty is levied in all parts of the UK, albeit in different forms. The amount of stamp duty you will pay is determined on the value of the property and your personal circumstances. The tax break was set to expire in March 2021, but it was extended by the Chancellor in his Spring Budget to allow more purchasers to benefit and kickstart the property market.
The whole stamp duty break expires on June 30, 2021, allowing potential buyers little over three months to get started on properties worth £500,000 or more.
The Chancellor has granted an extension until the end of September 2021, with a reduced threshold of £250,000, after which the exemption would revert to its previous levels of £125,000.
If buyers want to take advantage of the reprieve, they’ll have to get there early.
Before being requested to pay stamp duty, potential house buyers must finish the entire transaction, referred known as “completion.”
This section occurs after the contracts have been exchanged and signifies that the full move has been completed.
You will not be charged stamp duty if the transaction is completed during the stamp duty holiday period.
You have 14 days after completion to file a stamp duty tax return and pay any outstanding amounts.
These calculations should be done for you by your solicitor or conveyancer and filed on the day of completion.
This means you won’t have to pay the land tax if the purchase is completed by September 29 and your property is worth less than £250,000.
The same is true for residences worth more than £500,000. If you complete the transaction by June 29, 2021, you will be eligible for the reward.
The government has been petitioned to have the stamp duty holiday apply when contracts are exchanged, rather than when they are signed.