RE: Stamp duty...wait till after budget/Jan07 to exchange?

[landlord]

I am looking at upgrading to a bigger house and was wandering, IF stamp duty changes favourably during the budget, the new rates will take effect Jan 07. Do you pay stamp duty according to the DATE contracts are signed or the DATE completion takes place. If stamp duty change is favourable, maybe its worth delaying exchange or completion?

 

[BigM]

Do you pay stamp duty according to the DATE contracts are signed or the DATE completion takes place.

It is a matter of some dispute with arguments with the Revenue, but the Stamp Duty is payable on the deed so the relevant date is the closing date.
Of course there is a (miniscule) risk that there could be unfavourable changes made to SD in which case you'll be arguing it should be the signing date!

 

[Vanilla]

I believe it is in fact the date on the contracts which will be the applicable date for deciding whether a new or old stamp duty regime will apply. I say this with some experience of the matter.

 

[liteweight]

Yes Vanilla that's correct. When the last innovation with regard to stamp duty came in, I had a close relation (FTB) who still had to pay even though the house was under the threshold. He was only a couple of days out, borrowed to pay it and is still paying!!

 

[BigM]

I believe it is in fact the date on the contracts which will be the applicable date for deciding whether a new or old stamp duty regime will apply. I say this with some experience of the matter.

Well my solicitor always argues the closing date with Revenue for her clients - and has done so successfully.
As I said, it is a matter of some dispute - as evidenced by the fact that even solicitors aren't in agreement!

 

[Vanilla]

It's possible that the Revenue are somewhat amenable to argument.

I will never forget some years ago when rumours started of an old exemption being abolished and having to get out 100 sets of contracts in one day in order that they could be signed and dated before the new regime.

 

[BigM]

I will never forget some years ago when rumours started of an old exemption being abolished and having to get out 100 sets of contracts in one day in order that they could be signed and dated before the new regime.

Indeed - my solicitor hates Budget day since it invariably involves a flood of phone calls the next day trying to bring forward/push back/pull out....
and people try and argue they don't earn their fees (even though the EA's usually make a higher %!!)

 

[Moneypit]

My Solicitor told me it's from date of closing sale and not signing contracts, hope she's right because we're supposed to be signing in November and closing in January.

 

[Vanilla]

Why, are you hoping for a more favourable budget? If so I think you should discuss the matter with your solicitor again since there is no doubt in my mind that the contract date is the applicable date for the application of the regime- although the closing date is the date upon which the stamp duty becomes due. Maybe you are mixed up between the two.

 

[Askar]

Quote:
"the closing date is the date upon which the stamp duty becomes due"

Is this correct? Is it not required to be stamped within x days from date stated on deed/transfer??