The Law Society is urging the UK government to act to avoid an abrupt end to the increased SDLT zero rate, which is due to revert back to the pre-July 2020 rates for transactions which complete from 1 April 2021 onwards. Although the SDLT ‘holiday’ is thought to have boosted the UK housing market in 2020, with transactions expected to exceed those in 2019, the surge in demand and covid-19 restrictions have resulted in property transactions taking longer than usual. This presents a potential risk for buyers where the £500,000 zero-rate band ends suddenly on 31 March, with the rate of SDLT depending on whether or not the transaction completes before or after the deadline.
The society suggests ‘an extension to the deadline, or introducing appropriate transitional arrangements’ to help relieve pressure on the conveyancing system and reduce the risk for buyers and businesses involved in the property market.
The Law Society is urging the UK government to act to avoid an abrupt end to the increased SDLT zero rate, which is due to revert back to the pre-July 2020 rates for transactions which complete from 1 April 2021 onwards. Although the SDLT ‘holiday’ is thought to have boosted the UK housing market in 2020, with transactions expected to exceed those in 2019, the surge in demand and covid-19 restrictions have resulted in property transactions taking longer than usual. This presents a potential risk for buyers where the £500,000 zero-rate band ends suddenly on 31 March, with the rate of SDLT depending on whether or not the transaction completes before or after the deadline.
The society suggests ‘an extension to the deadline, or introducing appropriate transitional arrangements’ to help relieve pressure on the conveyancing system and reduce the risk for buyers and businesses involved in the property market.
