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‘Lock in’ the Stamp Duty holiday

Calls to the Chancellor to extend the Stamp Duty holiday may not work, but new build flat owners could benefit if they act now, says Sean Randall.

Efforts are being made to persuade Mr Sunak to extend the Stamp Duty holiday, which is worth up to £15,000 per property.

If this does not work, buyers worried about completing on or after 1 April 2021 could take the keys or pay 90% of the price before 1 April 2021, which would then give them the benefit. For many this will probably be unrealistic, but it might work for some.

For buyers of new-build flats, it may be possible to ‘lock in’ the holiday (legitimately) by paying the first instalment of ground rent before 1 April 2021.

The Act that introduced the Stamp Duty holiday already extends the holiday to buyers that “substantially perform” the sale contract before 1 April 2021. For some (e.g., off-plan flat-buyers) this might be worth considering. Retaining the (up to) £15,000 saving might outweigh the negative cash flow cost of paying the tax before completion.

Would you like to know more?

If you would like to discuss the above or how it may affect you, please get in touch with your usual Blick Rothenberg contact or Sean Randall, using the details to the right.

For any press queries, please contact David Barzilay whose details are to the right.

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