SDLT holiday to end and be replaced by transitional rate from July, HMRC confirms

The Stamp Duty Land Tax (SDLT) holiday will end as planned on 30 June 2021, HM Revenue & Customs (HMRC) has confirmed.

The relief – which could save home buyers thousands of pounds – is due to be replaced by a new transitional rate in July.

According to the tax authority, the temporary nil rate band of £500,000 will be removed at the end of June and be replaced by a transitional rate of £250,000 from 01 July to 30 September 2021.

The standard nil rate band (currently £125,000) will then be reinstated from 01 October 2021.

The rate of SDLT which applies to your purchase depends on the date that you complete your property purchase and not the date that you exchanged contracts.

Commenting on the deadline, the Law Society for England and Wales – which regulates the conveyancing profession – said solicitors are working around the clock to complete purchases, but unforeseen events may “limit the speed of a move”.

“Delays in the issuing of search results, delays in mortgage offers being issued, problems in the chain and with dependent transactions – are usually outside the control of the conveyancer. They cannot guarantee transactions will complete before the end of June,” said Law Society of England and Wales president I. Stephanie Boyce.

“It is key at this stage for conveyancing solicitors to take steps to manage their clients’ expectations about completing in time to take advantage of the stamp duty holiday.”

According to the latest research, the SDLT holiday will save the average buyer around £4,500 in taxes.

For help and advice with related matters, please get in touch with our expert team today.

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