How might the Stamp Duty holiday extension affect you?
The government had temporarily increased the stamp duty threshold to £500,000 for property sales in UK and N. Ireland until 31st March 2021.
We have had great news this morning that it will now be extended to the end of June 2021 as part of Rishi Sunak budget boost for the property market. The Chancellor is also expected to raise corporation tax and extend the furlough scheme in this week’s Budget as we emerge from lockdown.
This is very welcoming news, not only for the property market and more quick property sale, but also for individuals and families alike.
If you have…
1, Bought a property that wasn’t suitable to live in on day of completion
2, Moved property from joint names to a limited company
3, Bought mixed use property (i.e. residential and shop, office, pub etc.)
4, Bought a property with an annex or outbuilding
…it might be worth digging out your completion statements to see what SDLT (Stamp Duty Land Tax) you paid and then talking to your tax specialist to see if you have overpaid.
About to buy a 2nd home? What lay’s ahead?
An example from a tax specialist known as “Cornerstone Tax” are saying that HMRC has amended its guidance on stamp duty in such a way as to suggest many buy to let investors have overpaid. They found that additional dwelling supplement (the 3% stamp duty surcharge introduced in 2016) could only apply where the transaction consisted wholly of residential properties. The practice found that in certain circumstances, the default minimum rate of 1% which remained on the statute book, was actually still in force.
In this climate why rush making the wrong choice? Instead you can ensure every decision works for you! Here at Pick My Pad we are very fortunate to work closely with our in-house accountants, MCC Accountants, who can help you deal with any financial up comings. Please contact us with your SDLT and tax related questions and for help with a quick property sale. Call 0161 790 3999 or email info@pickmypad.com.
