Stamp Duty Change , What Date?

[jbswagger]

Hi,

Does anyone know the actual date the new stamp duty rules for BTL comes in?

Is the date the start of the new financial year (April 4th), or is it the 1st April?

Thanks

[PhilboSE]

1st April.

[kev1974]

Best wait till Wednesday for the full details ... there's still not been anything concrete announced!

With a bit of luck he's going to push it back 6 or 12 months because NOBODY is currently ready for it, so it's a future PPI style "bad professional advice" scandal in the making right now.

[Jobbo]

kev1974 said:

it's a future PPI style "bad professional advice" scandal in the making right now.

Not exactly an apt comparison - misselling scandal v. change in the law.

The chancellor gave us enough notice that it was coming on 1 April; he told us in November. The legislative details of budget changes which take effect the same or next day are regularly only published after the speech. Really, don't expect it to be delayed.

[kev1974]

Jobbo said:

kev1974 said:

it's a future PPI style "bad professional advice" scandal in the making right now.

Not exactly an apt comparison - misselling scandal v. change in the law.

The chancellor gave us enough notice that it was coming on 1 April; he told us in November. The legislative details of budget changes which take effect the same or next day are regularly only published after the speech. Really, don't expect it to be delayed.

Yep, he gave vague details, and then there was a half-baked consultation, but even now two weeks before it apparently goes into law there still aren't firm details. It's not like it's just a movement of the percentage rate on an existing tax policy, it's a whole strategy change which affects how people will conduct multi-hundred-thousand-pounds transactions. Ridiculous to only know the true details two weeks before.

[HotJambalaya]

If you exchange before, but complete after are you still hit at the new rate? I seem to recall the last change you could pick rates

[jenzo]

HotJambalaya said:

If you exchange before, but complete after are you still hit at the new rate? I seem to recall the last change you could pick rates

Would also like to know the same thing. Can someone clarify? I am in the process of exhaching contracts.

[AnimalMother]

You need to have exchanged before sometime in November 2015 unfortunately.

[Shaoxter]

AnimalMother said:

You need to have exchanged before sometime in November 2015 unfortunately.

That's what the consultation paper says.
This whole thing is beyond farcical, we're not talking about a change of VED or VAT here. People are making the biggest transactions of their lifetime and with two weeks to go, the rules are still unclear.

[Ozzie Osmond]

If that extra tax would make a transaction 3% too expensive then you negotiate 3% off the price (or some suitable compromise). That's what being in business is all about.

Stamp Duty which is accidentally overpaid can be claimed back from HMRC in any event.

[Jobbo]

Shaoxter said:

People are making the biggest transactions of their lifetime and with two weeks to go, the rules are still unclear.

Well, it would have to be a second property purchase for this to affect the transaction, so perhaps the second biggest transaction of their lifetime.

[Rangeroverover]

The legislation is published on march 16th, I gather from my lawyer that the law society courses on it start on the 20ish of march

[jenzo]

kev1974 said:

Best wait till Wednesday for the full details ... there's still not been anything concrete announced!

With a bit of luck he's going to push it back 6 or 12 months because NOBODY is currently ready for it, so it's a future PPI style "bad professional advice" scandal in the making right now.

Is there any hope for any delay on this?

[Jobbo]

Rangeroverover said:

The legislation is published on march 16th, I gather from my lawyer that the law society courses on it start on the 20ish of march

There's no need to go on a course to submit a slightly different SDLT return. In any case, I can't see any courses available on it on the Law Society website; there's a generic course which includes SDLT on residential property in June but it's a catch-all update, not specifically about SDLT.

The 3% may be a significant sum, yes - but there's no reason to expect a delay in implementation and no reason why it will be that complicated to administer in practice.

[Rangeroverover]

As I understand it 3% if not Completed by April 1st, if you are bridging and/or sell another property within 18 months you get a refund

[jenzo]

Rangeroverover said:

As I understand it 3% if not Completed by April 1st, if you are bridging and/or sell another property within 18 months you get a refund

Is this 100% for sure - or still tbc - post Wednesday?

[Eric Mc]

Jobbo said:

There's no need to go on a course to submit a slightly different SDLT return. In any case, I can't see any courses available on it on the Law Society website; there's a generic course which includes SDLT on residential property in June but it's a catch-all update, not specifically about SDLT.

The 3% may be a significant sum, yes - but there's no reason to expect a delay in implementation and no reason why it will be that complicated to administer in practice.

Want a bet?

There will be plenty of challenges on this piece of legislation I reckon - especially when it comes to couples, foreign properties and properties that are in shared ownership.

[Shaoxter]

No delay on implementation, still clear as mud it seems...
So is the consultation paper now considered to be gospel?

[jenzo]

So contracts must be signed with completion before 31 March?

[bigbaddom]

Does anyone know what the rules will be regarding property developer ltd companies

I know it says first corporate purchase will be liable, but I was wondering if property developers would be exempt as they are from the 15% sdlt too

thanks