Time is Running Out to Save Thousands on Stamp Duty
On 8th July our Chancellor of the Exchequer, Rishi Sunak, announced a Stamp Duty Holiday which could save home buyers a staggering £15,000 in Stamp Duty Land Tax (SDLT). It’s a bold move that is intended to boost the property market during these unpredictable Covid-19 times and will see all home buyers whose purchase price is between £125,000 and £500,000 make a saving.
But be warned, good things must come to an end and on 31st March 2021 the Stamp Duty will return to the usual pre-Covid rates. You may think you have plenty of time and whilst some property purchases can complete is super-fast time there are many steps that must be ticked off before completion can take place and any of these steps could hit hurdles that delay the process and ultimately result in a completion that occurs after the SDLT holiday and therefore costs you your saving.
What is Stamp Duty Land Tax (SDLT) and who has to pay it?
Stamp Duty Land Tax (SDLT) is a tax levied on property purchases in England and Northern Ireland. Buyers must pay SDLT if the property price exceeds the relevant threshold. The amount varies based on the purchase price, type of property (residential or commercial), and whether the buyer is a first-time buyer or an additional property owner.
For more information on the SDLT Thresholds (Stamp duty Thresholds) visit the government website or contact us on 01924 290029.
How long does it take to complete on a Property Purchase?
It’s commonly quoted that the average time to complete on a property purchase is 12 weeks and although some solicitors are proud to have a timescale far shorter than this we exercise caution when it comes to specifying a timescale. 12 weeks (or three months) from today doesn’t leave very much leeway on the plan before the 31st March 2021 deadline and if your budget is tight then any delays which result in completion occurring after the deadline might mean a make or break situation where additional emergency finance is needed to fill the void between the property purchase price, your approved mortgage and the Stamp Duty bill payable to HMRC.
There is still time to cash in and benefit from the SDLT holiday
Meet Our Head of Commercial Property
Stuart Knox has be working in the local legal community for many years. He qualified as a solicitor in 2006 at traditional Wakefield firm Dixon Coles & Gill before joining Thornton Jones Solicitors in February 2016.
Stuart possesses a broad legal knowledge and skill set, having a background dealing with all kinds of Property transactions and also having previous experience working in Wills & Probate and General Litigation.
But there’s no need to panic! There is still time benefit from the SDLT holiday. Here are our top tips on how you can still cash in and make some serious savings when buying your new home.
- If you are planning on buying a new home and wish to take advantage of the Stamp Duty Holiday then it’s advisable to act now. The whole process from start to finish can take on average 12 weeks and this doesn’t factor in the increased workloads at the local authority and other departments which from our recent experience is resulting is delays getting searches back. The sooner we can submit your request for searches to be completed to sooner we will receive them and this will put us in good stead to complete prior to the 31st March 2021 deadline.
- If you are dependent on the sale of your property to release funds to buy your new home then get it on the market now. The property market is booming right now and property seems to be selling fast however this doesn’t mean we can be complacent. According to the experts the Market Date for a property is 26th September. This is the date you should have your property on the market to allow time for it to be marketed by your Estate Agents, viewed by prospective purchases, offers received and accepted and for the whole sale process to complete before the 31st March 2021 deadline.
- If you are looking to buy a new home and are in need of a mortgage to make it a reality then it’s wise to go get a mortgage offer immediately. Knowing a) what you can afford and b) that you can indeed borrow that amount ahead of searching for a new home will certainly speed up the process. Speaking to a Financial Advisor will really help in getting your mortgage offer fast so that you can view properties that are affordable and avoids wasting time viewing properties that may be financially out of reach.
- If you are selling your property (to enable a purchase) then think back to when you purchased it. Were there any complications such as access rights? If there were and you have communications relating to these then dig them out in readiness to present to your solicitor. This will likely help in speeding up the process. If the property is leasehold then grab a copy of the lease. Think about making a folder containing such documentation and include things like FENSA certificates for replaced windows, your EPC certificate, any certificates relation to any building works or alterations.
- Many but not all property transactions form part of a chain. Where there is a chain, you are reliant upon every single part of the chain being ready to complete before you can complete and this means that, to a large extent, making sure you complete before the SDLT Holiday deadline is out of your hands. Maybe consider a property that is part of a small (or ideally no) chain to improve the chances of a timely completion.
Finally, it might not go to plan and you may find yourself facing a large tax bill should completion occur after the deadline. If this were to happen and you are still set upon completing on the home of your dreams then it may be sage to ensure you have back up funds available to cover such a bill.
Stamp Duty Land Tax (SDLT) is a tax levied on property purchases in England and Northern Ireland. Buyers must pay SDLT if the property price exceeds the relevant threshold. The amount varies based on the purchase price, type of property (residential or commercial), and whether the buyer is a first-time buyer or an additional property owner.
For more information on the SDLT Thresholds (Stamp duty Thresholds) visit the government website or contact us on 01924 290029.
www.gov.uk/stamp-duty-land-tax
The amount of SDLT owed depends on the purchase price and property type. SDLT is charged in bands, meaning different portions of the price are taxed at different rates. There are also reliefs and exemptions for first-time buyers and other circumstances. The latest SDLT rates can be checked on the UK Government website.
www.gov.uk/stamp-duty-land-tax
Yes, first-time buyers purchasing a residential property for £425,000 or less pay no SDLT. If the property is between £425,001 and £625,000, they pay a reduced rate. However, for properties over £625,000, the standard SDLT rates apply.
Please note that these thresholds are subject to change and it is therefore advisable to contact us for more information or to visit the government website.
www.gov.uk/stamp-duty-land-tax
SDLT must be paid within 14 days of completing the property purchase. Usually, a solicitor or conveyancer will handle the submission and payment on behalf of the buyer. Payments are made to HM Revenue & Customs (HMRC) along with an SDLT return.
Yes, an additional 3% surcharge applies on top of the standard SDLT rates for second homes or buy-to-let properties over £40,000. This applies even if the buyer already owns property abroad. Some exemptions may apply depending on circumstances.
Please note that these thresholds are subject to change and it is therefore advisable to contact us for more information or to visit the government website.
www.gov.uk/stamp-duty-land-tax
Contact us for expert advice on Stamp Duty
If you are looking to purchase a property and require advice on Stamp Duty Land Tax (SDLT) then contact us today to discuss your needs further and to make an appointment.
The content of this blog post is for information only and does not constitute formal legal advice and should not be relied upon as advice. Thornton Jones Solicitors Limited accepts no liability for any such reliance upon this content. Where the post includes links to external websites, Thornton Jones Solicitors Limited accepts no responsibility for the content of such sites. Any link to a third-party website should not be construed as endorsement by Thornton Jones Solicitors Limited of any content, products or services which are outside our direct control.
Legal Assistant In Lockdown
It’s really hard to write something when you are usually in the ‘background’ and doing what we do best in assisting the brilliant people we work for. I’m not one for putting myself in the public eye, I suffer (like a lot of people) with anxiety and depression, so I usually like to keep myself locked away far away from the public eye and do what I do best (if I don’t mind saying so myself) by keeping my head down and getting through the ever mounting list of dictation.
I’ve honestly found the last 3 weeks being working remotely at home quite alright. My happy place is my home and I’m lucky to feel that way. I am fine and dandy being here at home working away in the spare room until this week kicked in.
My happy place is my home and I’m lucky to feel that way
Crikey I’ve felt low, tearful, stressed out and under pressure this week. Everything has slowed down, backlogs at court, communications, return updates and it’s frustrating. It’s placing a huge amount of pressure on people’s lives and I get that (I am one of those people from a personal point too). This week has been a huge deal. My lovely partner has been at home fetching brews to me (and a wine at 5pm) instead of my lovely friend at work Michelle (she keeps me watered with brews on a proper level). I’ve missed Jess with her huge personality and upbeat work ethic and Janet who I’ve worked with for 18 years. You, Janet, showed me so much (I know when I left school I thought I knew everything) and I will always be grateful for your love, patience and affection to me and also to my family.
To those I haven’t mentioned specifically, it absolutely doesn’t mean you don’t matter – you do – more than you will ever know.
I salute you and you are all amazing and our heroes
I’ve watched the concert today that was aired last week and feel completely humbled. I have key workers in my family from my step-mum who works in a school to my sister who works in a care home and my mother in law who cleans at Pinderfields hospital. I salute you and you are all amazing and our heroes.
Myself and my partner were lucky enough to have a new nephew born recently and we were able to meet and cuddle him before all this happened. We bonded and I made sure he knew that auntie Stacey is the cool Aunt that doesn’t ‘do the nappies’ but will give the best cuddles ever. I felt he ‘understood’ and we ‘got’ each other. I miss him along with all of our babies that we can’t see. I miss you all massively. We had a new niece born 3 weeks ago and we haven’t been able to meet her yet. I can’t wait to get my hands on her and I bet she can’t wait either.
I’m doing the best thing I possibly can by staying at home and keeping working to try as much as possible to keep clients’ matters proceeding
I would love to do more for the community and have felt very much that I haven’t done very much or enough but then I realised that by staying at home (and my partner doing the essential shopping – for wine obvs.) that I’m doing the right thing. I’m doing the best thing I possibly can by staying at home and keeping working to try as much as possible to keep clients’ matters proceeding and try to keep making a difference in my own way and any way that I can – no matter how small.
I am trying – we are all trying in our own way! Stay safe, take care, and be patient! We can all do this if we do it together.
Contact us
Whatever your legal needs we are here to help. Whether you are buying or selling property, in need of Family Law advice, or perhaps you with to make a Will or update an existing Will, our solicitors in Yorkshire are here to guide you every step of the way.
The content of this blog post is for information only and does not constitute formal legal advice and should not be relied upon as advice. Thornton Jones Solicitors Limited accepts no liability for any such reliance upon this content. Where the post includes links to external websites, Thornton Jones Solicitors Limited accepts no responsibility for the content of such sites. Any link to a third-party website should not be construed as endorsement by Thornton Jones Solicitors Limited of any content, products or services which are outside our direct control.
Ruminations of a Self-Isolating Solicitor
I am generally a very optimistic and positive person. However this self-isolating is really, really difficult. I’ve had a tough week this week trying to keep myself motivated to work from my dressing table which is starting to feel like a prison camp! I realise how much I need people to be around to keep motivated to run a business and deal with the emotions that sometimes our clients inevitably display.
As I write this it’s Thursday of what I think is now week four of lockdown (I cannot even remember the days anymore) and all I can think about is wishing it was Friday so I could justify having a bottle of wine. I am desperately trying to stick to only drinking at the weekends but it is tough I can’t deny it. I suspect we may become a nation of alcoholics before this is done!
Staying Positive During Lockdown
I keep trying to think positive thoughts about how so many more people are worse off than me – I have a lovely garden and three of my four children isolating with me, not to forget my husband who keeps me well stocked in food and coffee. Don’t get me wrong I have absolutely loved my time with them and we have definitely created some memories I will treasure forever, but it has made me think a lot about what actually makes me tick.
It’s just that there is something wonderful about working with other human beings who are all striving for the same goal as you and a number of whom you have known for many years. It’s a cliché I know, but your work colleagues do become like a family to you and I’m feeling this more than ever at this moment. It’s the little things I miss like being able to have a quick two minute chat with a colleague about their new puppy, or how frustrated their husband is making them feel. I miss my lovely receptionist bringing me a cup of coffee rather than my equally lovely husband, just to make a change of scenery.
It’s having a walk to the sandwich shop at lunchtime with a different colleague every day, helping clients deal with issues which are often way more serious than anything I face in my own life, or just sharing a joke with someone you don’t have to live with!
I need my daily fix of human interaction, it makes me who I am and for that I am grateful
Never before have I realised how much I value my work colleagues and I hope I never forget that when my alarm goes off at 6 am again (who would’ve thought I’d be looking forward to that!). Turns out my dreams of early retirement have completely changed – I now know I would be bored the majority of the time and that actually going into an office every day, whilst sometimes stressful it cannot be denied, is something I will now treasure. I need my daily fix of human interaction – it makes me who I am and for that I am grateful.
Contact us
If you need legal advice then please contact us at any of our Yorkshire offices. We are here to help you with your legal needs, whether you are buying or selling a property, you need to make a will or update an existing will, of maybe you require help with Family Law matters. our skilled an experience Yorkshire Solicitors can provide you with a friendly service.
The content of this blog post is for information only and does not constitute formal legal advice and should not be relied upon as advice. Thornton Jones Solicitors Limited accepts no liability for any such reliance upon this content. Where the post includes links to external websites, Thornton Jones Solicitors Limited accepts no responsibility for the content of such sites. Any link to a third-party website should not be construed as endorsement by Thornton Jones Solicitors Limited of any content, products or services which are outside our direct control.
How a Lifetime ISA can help you buy your first home as well as save for your Retirement
If you’re looking to buy your first home or boost your retirement savings, then a Lifetime ISA (LISA) could be a great option for you. A Lifetime ISA is designed to help first-time buyers save for a property while also supporting long-term financial security, a Lifetime ISA (LISA) offers a 25% government bonus on contributions, making it a valuable savings tool.
A Lifetime ISA (LISA) can be opened if you are between the ages of 18 and 39 and can be held until age 50. You can choose between a Cash LISA, which earns interest, or a Stocks and Shares LISA, which invests your savings. Whichever option you choose, the government boosts your contributions with a 25% bonus, helping you grow your savings faster.
What is a Lifetime ISA?
A Lifetime ISA (LISA) is a tax-free savings account designed to help first-time buyers save for a home or build a retirement fund. Open to those aged 18 to 39, it allows savings of up to £4,000 per tax year, with a 25% government bonus added. The funds can be used to buy a first home (up to £450,000) or withdrawn penalty-free from age 60 for retirement.
How much bonus does the government pay on a Lifetime ISA?
The government adds a 25% bonus to your contributions, up to a maximum of £1,000 per year. This bonus is paid monthly based on the contributions made in the previous month. For example, if you contribute £100 in June, a 25% bonus of £25 will be added to your Lifetime ISA in July. You can use your savings towards purchasing your first home after at least 12 months of saving, as long as the home is valued up to £450,000. If you’re buying jointly, both buyers can have their own LISAs, allowing you both to receive the bonus.
If you don’t use the funds for a home purchase after 12 months, you can keep the money and the bonuses in the account and use it for retirement savings. However, if you decide to withdraw it for any other reason, you’ll face a 25% withdrawal penalty, meaning you’ll lose the government bonus and could end up with less than you originally invested.
What happens to my Lifetime ISA if I haven’t saved for the minimum period of 12 months?
If you’ve saved for less than 12 months, you won’t be able to use your Lifetime ISA savings for a home purchase. The 12-month minimum saving period is a requirement to access the funds for a first home. Attempting to withdraw the funds before reaching the 12-month mark for a home purchase will result in a penalty, and you could lose the government bonus and part of your own savings.
After you have withdrawn your savings, including bonuses, to fund or part-fund the purchase of your first home, you can keep the Lifetime ISA and continue to invest for your retirement. Continuing to invest will still attract the government bonus of 25%.
How can I use my Lifetime ISA for retirement
Whether you have used your LISA for the purchase of your first home or not, any funds remaining in your Lifetime ISA can be kept and added to as part of your retirement savings. Any further contributions you make will continue to attract the 25% government bonus. You can continue to contribute to your LISA until you reach age 50. However, to use these funds for retirement, they must remain in the Lifetime ISA until you reach age 60. Withdrawing funds before age 60 for any reason other than buying your first home would result in a 25% penalty.”
Do I need a solicitor to use my Lifetime ISA (LISA)?
You do not need a solicitor to open or manage your Lifetime ISA (LISA). However, if you are using the funds for the purchase of your first home, you will need a solicitor or conveyancer to handle the legal aspects of the transaction. They will help ensure the LISA funds are correctly applied towards the purchase and ensure all requirements are met for you to receive the government bonus.
"*" indicates required fields
How to use your Lifetime ISA when buying your first home
When purchasing your new home, you will need the aid of a solicitor to claim this incentive on your behalf. Our residential conveyancing solicitors here at Thornton Jones can assist you with using your Lifetime ISA (LISA), and advise you on the rules and timeframe in which they must be used.
No, the Lifetime ISA is specifically for first-time buyers. If you already own or have previously owned a property, you won’t be eligible to use it for a home purchase.
If you don’t use your LISA for a first home, you can keep saving in it until you turn 60, at which point you can withdraw your money (including the government bonus) without penalty.
Yes, you can have both, but you can only use the government bonus from one of them when buying your first home. A Lifetime ISA may offer a higher savings limit and bonus.
You must have opened and held your LISA for at least 12 months before you can use it towards a home purchase.
If your property purchase doesn’t go ahead, the money must be returned to your LISA to avoid the 25% withdrawal penalty.
The content of this blog post is for information only and does not constitute formal legal advice and should not be relied upon as advice. Thornton Jones Solicitors Limited accepts no liability for any such reliance upon this content. Where the post includes links to external websites, Thornton Jones Solicitors Limited accepts no responsibility for the content of such sites. Any link to a third-party website should not be construed as endorsement by Thornton Jones Solicitors Limited of any content, products or services which are outside our direct control.
