SDLT holiday is over

The SDLT holiday in England initially ran from 8 July 2020 to 31 March 2021, increasing the 0% band for residential properties from £125,000 to £500,000. It was then extended until 30 June 2021. However, rather than abruptly returning to £125,000, there was a tapering period from 1 July 2021 where the 0% band became £250,000. This ended on 30 September 2021. But what is the SDLT position if a buyer has exchanged contracts before 30 September, but completion doesn’t take place until later on?

The date that triggers the SDLT charge is the completion date, not the date of exchange (which is generally the most important date when looking at capital gains tax). This means that the 0% band is limited to £125,000. Of course, if the individual is a first time buyer, the 0% band is £300,000 and so this may take the sting out of the holiday ending to a certain degree. There is a similar relief in Scotland, though the enhanced 0% band is £175,000. Wales has no first time buyer relief, but the standard 0% is a more generous £180,000 in any case.