Calls for SDLT deadline extension
Property portal Rightmove has urged the government to grant a short-term extension to the impending Stamp Duty Land Tax (SDLT) deadline, following reports that almost 74,000 home movers risk missing the March 31st cut-off.
On April 1st, the thresholds for SDLT will change and thousands of buyers awaiting the completion of a home move face the possibility of paying substantially more in tax than they would have, had they completed in March. With many delays attributed to long completion times in England, Rightmove is calling for a grace period to allow ongoing transactions to be finalised.
In its study, Rightmove found that over 25,000 first-time buyers are at risk of missing the deadline, potentially resulting in an extra £34 million in tax payments. In total, it has been estimated that nearly 74,000 home-movers could be affected, paying a combined £142 million in additional taxation.
If home-movers are unable to complete by March 31st, Rightmove says the average additional SDLT could amount to £2,500. First-time buyers would face even steeper increases. Those purchasing homes for £425,000 would pay £6,250 in SDLT, up from £0 before the deadline. The increase would be even higher for properties priced between £500,001 and £625,000, with an extra £11,250 added to the tax bill.
Rightmove’s property expert, Coleen Babcock, said: “ We expect a rush to complete close to March 31st as first-time buyers and home-movers try to avoid paying extra in tax. Our numbers show how there is a relatively small, but disproportionately impacted group of first-time buyers who will be caught out by the changing thresholds, highlighting some disparities in the way the current system works.”
She continued, “With 74,000 people only just set to miss the deadline, in part because of the extremely lengthy completion times in England, we think it would make sense to grant a short extension to the deadline and help these movers, rather than have them face higher charges when they complete later in April.”
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