Ooooh! SNP Raise Stamp Duty!!
Discussion
The new rates kick in tomorrow, however the old rates can only apply to deals where contracts have been concluded by today and you can choose old or new rates to suit you providing you have completed by today.
I had made an offer, which was agreed but we were still to negotiate smaller details and then go back with the qualified acceptance of missives from both parties. So the smaller details have been blown into the weeds and they have been instructed to proceed and conclude by 5pm. I'm just waiting on the call to say that is the deal is officially done.
I had made an offer, which was agreed but we were still to negotiate smaller details and then go back with the qualified acceptance of missives from both parties. So the smaller details have been blown into the weeds and they have been instructed to proceed and conclude by 5pm. I'm just waiting on the call to say that is the deal is officially done.
Hollowpockets said:
The new rates kick in tomorrow, however the old rates can only apply to deals where contracts have been concluded by today and you can choose old or new rates to suit you providing you have completed by today.
I had made an offer, which was agreed but we were still to negotiate smaller details and then go back with the qualified acceptance of missives from both parties. So the smaller details have been blown into the weeds and they have been instructed to proceed and conclude by 5pm. I'm just waiting on the call to say that is the deal is officially done.
Ahhhhhhh, didn't realise you could chose which duty rate to apply! Makes sense then. Surprised the government make it flexible. I had made an offer, which was agreed but we were still to negotiate smaller details and then go back with the qualified acceptance of missives from both parties. So the smaller details have been blown into the weeds and they have been instructed to proceed and conclude by 5pm. I'm just waiting on the call to say that is the deal is officially done.
Hope you get everything through by 5pm!! Let me know.
cat220 said:
From my reading, if you conclude prior to the 4th December then the old rate will apply...
"For purchases of residential property that complete on or after 4 December 2014,
the stamp duty land tax (SDLT) calculation will change (subject to the transitional
provisions described below). There will be a series of SDLT rates that apply to the
amount of consideration falling within the new bands"
I'm not sure on the definitions, is "to conclude" the contractual agreement to buy\sell or is it the date of the handover, when the money actually changes hands? Two different things. "For purchases of residential property that complete on or after 4 December 2014,
the stamp duty land tax (SDLT) calculation will change (subject to the transitional
provisions described below). There will be a series of SDLT rates that apply to the
amount of consideration falling within the new bands"
I already have my £4800 spent in my head, you can't take it away!
Edited by scz4 on Wednesday 3rd December 16:43
scz4 said:
cat220 said:
From my reading, if you conclude prior to the 4th December then the old rate will apply...
"For purchases of residential property that complete on or after 4 December 2014,
the stamp duty land tax (SDLT) calculation will change (subject to the transitional
provisions described below). There will be a series of SDLT rates that apply to the
amount of consideration falling within the new bands"
I'm not sure on the technical terminology, but is conclude the agreement to buy\sell being contractual, pending an actual date, or is it the date of the handover if you like? Two different things. "For purchases of residential property that complete on or after 4 December 2014,
the stamp duty land tax (SDLT) calculation will change (subject to the transitional
provisions described below). There will be a series of SDLT rates that apply to the
amount of consideration falling within the new bands"
I already have my £4800 spent in my head, you can't take it away!
Hollowpockets said:
correct, contract concluded date. My moving date is 16th March
But Hypothetically speaking of course, I would therefore of been better concluding tomorrow as my concluded date would fall under the new changes from 4th. You would be worse of from tomorrow, but technically I'd be better off. So I wonder if I will miss out.
Unless of course, you can choose as pointed out, but I don't see that option referenced anywhere
Nervous times!
Edited by scz4 on Wednesday 3rd December 16:53
scz4 said:
Hollowpockets said:
correct, contract concluded date. My moving date is 16th March
But Hypothetically speaking of course, I would therefore of been better concluding tomorrow when the changes kick in?You would be worse of from tomorrow, but technically I'd be better off. So I wonder if I will miss out.
Unless of course, you can choose as pointed out, but I don't see that option referenced anywhere
Nervous times!
Chapter 2 Point 6 starts detailing this.
Graham See points 6 and 7 re choice of rates
The transitional provisions
6. Where contracts for the purchase of a property were exchanged before 4 December 2014 but the contract is completed on or after that date, purchasers can choose not to apply the new rules and so pay SDLT under the old rules. See paragraphs 10 below for exclusions from this rule.
7. Purchasers can also choose not to apply the new rules where the contracts were exchanged before 4 December 2014 and the contract was substantially performed but not completed before that date. In these circumstances the effective date of the transaction will be the date of substantial performance but there will be a further notifiable transaction on completion, which will attract SDLT if the chargeable consideration exceeds that for the first transaction.
8. To choose the old rates, the purchaser just has to enter the appropriate amount of SDLT in box 14 of the land transaction return. If the return has already been submitted under the new rules and the purchaser wishes to pay under the old rules (or vice versa) they can amend the return. A land transaction return can be amended up to 13 months after the date of completion. An election may be made in a return or later return following a later linked transaction (section 81A FA 2003), subject to the time limits associated with that return.
9. These transitional rules may not apply to certain transactions which involve variation of a contract, assignments of rights and subsales, or which arise from the exercise of certain rights or options. The terms of certain conditional contracts may also cause the transitional rules not to apply.
10. The new SDLT rates and the transitional rules will apply to residential property transactions in Scotland until LBTT replaces SDLT in Scotland on 1 April 2015. Transactions in Scotland settled after 1 April 2015 will be liable to LBTT if missives were concluded on or after 1 May 2012, the date of Royal Assent to the Scotland Act 2012.
11. See Chapter 3 for examples of how the transitional provisions apply.
The transitional provisions
6. Where contracts for the purchase of a property were exchanged before 4 December 2014 but the contract is completed on or after that date, purchasers can choose not to apply the new rules and so pay SDLT under the old rules. See paragraphs 10 below for exclusions from this rule.
7. Purchasers can also choose not to apply the new rules where the contracts were exchanged before 4 December 2014 and the contract was substantially performed but not completed before that date. In these circumstances the effective date of the transaction will be the date of substantial performance but there will be a further notifiable transaction on completion, which will attract SDLT if the chargeable consideration exceeds that for the first transaction.
8. To choose the old rates, the purchaser just has to enter the appropriate amount of SDLT in box 14 of the land transaction return. If the return has already been submitted under the new rules and the purchaser wishes to pay under the old rules (or vice versa) they can amend the return. A land transaction return can be amended up to 13 months after the date of completion. An election may be made in a return or later return following a later linked transaction (section 81A FA 2003), subject to the time limits associated with that return.
9. These transitional rules may not apply to certain transactions which involve variation of a contract, assignments of rights and subsales, or which arise from the exercise of certain rights or options. The terms of certain conditional contracts may also cause the transitional rules not to apply.
10. The new SDLT rates and the transitional rules will apply to residential property transactions in Scotland until LBTT replaces SDLT in Scotland on 1 April 2015. Transactions in Scotland settled after 1 April 2015 will be liable to LBTT if missives were concluded on or after 1 May 2012, the date of Royal Assent to the Scotland Act 2012.
11. See Chapter 3 for examples of how the transitional provisions apply.
Edited by Hollowpockets on Wednesday 3rd December 17:04
stiglet said:
So if I have this right - a deal at £600,000 would be
SDLT today - £24,000
SDLT tomorrow - £20,000
And after 1.4.15
Scotland - £37,300
England - £20,000
Get yer hooses now!!!....
Don't worry the SNP are going to win the 2015 election and declare independenceSDLT today - £24,000
SDLT tomorrow - £20,000
And after 1.4.15
Scotland - £37,300
England - £20,000
Get yer hooses now!!!....
so after 1.6.15
All houses over £600.000 will become property of the state
If I'm working out the sums correctly, based on the current (new) stamp duty system, versus the new Scottish system we get in April, anything over £254,000 will pay more tax under the new Scottish system.
That's a massive difference from the £324,000 point it was against the old stamp duty!
That's a massive difference from the £324,000 point it was against the old stamp duty!
Tinohead said:
If I'm working out the sums correctly, based on the current (new) stamp duty system, versus the new Scottish system we get in April, anything over £254,000 will pay more tax under the new Scottish system.
That's a massive difference from the £324,000 point it was against the old stamp duty!
In fact, by the time you get to £324,000 you'll be paying £3,500 more.That's a massive difference from the £324,000 point it was against the old stamp duty!
Easty-5 said:
We concluded our missives a month or so ago, but we don't get the keys until 3rd April 2015 (new build). House cost is £299,950 so stamp duty was £8998.50. Do the new changes mean we will still be paying the same or will we be lucky and only have to pay £4997.50?
Jamie you can pay under whichever rate system suits you calculator - http://www.hmrc.gov.uk/tools/sdlt/land-and-propert...
Hollowpockets said:
Jamie you can pay under whichever rate system suits you
calculator - http://www.hmrc.gov.uk/tools/sdlt/land-and-propert...
Graham, I was hoping this was the case but I don't think it is. I have been reading up more on it and from 1st April 2015 Scotland's own rates come into play wchic is 0% up to £125,000, 2% for £125,000-£250,000 & 10% for £250,000 - £324,000. So going by my maths we will be paying £7495. Still a saving over almost £9k but not as much as a saving as it could be. calculator - http://www.hmrc.gov.uk/tools/sdlt/land-and-propert...
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