The long wait and very overdue kick start to the property market has now been announced by the chancellor Rishi Sunak. The Stamp Duty change is due to come in to effect immediately meaning that not only first time buyers will continue to benefit from Stamp Duty reliefs to enable them to access the property market, but everyone will benefit from the new exemption.
This is possibly one the most beneficial changes to Stamp Duty since the mad rush in 2016 when stamp duty was £0.00 for some first time buyers.
To help Bradley Bernett has prepared some general questions and answers to offer some assistance to clients, agents and brokers.
When will the change take effect?
With immediate effect, however, it is likely to in reality take a few hours for updates to take effect to those calculating Stamp Duty for those who are completing today.
When will the change be stopped?
Chancellor Rishi Sunak has stated that the new scheme will run until 31st March 2021
Do I need to do anything to ensure that I am eligible for the change?
Nothing is required to be provided by you as the client, and we as your lawyers will be in touch with any additional documentation that is needed.
Who is eligible for the saving?
Early indications set out that everyone is eligible subject to meeting eligibility criteria set by the government.
New build purchasers
It is not clear or evident if you are required to complete prior to the 31st March 2021 or if an exchange within the time period will mean you are eligible. Likewise, if an exchange of contracts has taken place prior to today, it again is unclear if you can claim the relief.
Does the relief apply to a property that has already exchanged but not yet completed?
The legislation has been cleared up to confirm that the date of completion is when the contract if substantially fulfilled which means that if you exchanged prior to the 7th July 2020 but complete after the 7th July 2020 you will be eligible for the reduction in the stamp duty.
If you have any further question and or require further assistance please do get in touch with the property team on 0208 363 4444