We completed on a flat last week before the stamp duty holiday and paid the tax in full, can we now claim it back?
We completed on the purchase of a flat last week, paying the full amount of stamp duty as we are not first-time buyers.
Can we now claim back this tax since we missed out on the new stamp duty holiday by just a few days?
We could do with the money for repairs and decorating.
Stamp duty: The tax was cut on property transactions below £500,000 – but the relief cannot be backdated
Anne Ashworth answers: On Wednesday Chancellor Rishi Sunak raised the stamp duty threshold (the point at which the tax is payable) to £500,000. Previously it was £125,000, or £300,000 for first-time buyers.
Now, anyone completing on the purchase of a home priced up to £500,000 will pay no stamp duty.
The tax on more costly properties will be charged on the portion above £500,000.
Estate agent Rightmove estimates that the savings for homebuyers range from £646 in the North East to £15,000 in London, based on the average asking price for a home in these regions.
But only those who complete between 8 July 2020 and 31 March 2021 are entitled to benefit.
This means you cannot ask for the relief to be backdated.
It seems unlikely the Chancellor will bow to pressure for the measure to be backdated.
The stamp duty holiday is intended to encourage people to move home, rather than reward those who have done so.
However, anyone who has exchanged and is yet to complete can enjoy the perk — which applies in England and Northern Ireland only. Wales and Scotland have their own land taxes.
This chart shows how stamp duty will be slashed during the tax holiday that will last until 31 March 2021, with a zero rate to £500,000. The red bars show bills under the old rates and the green bars show bills now under the stamp duty holiday
|Purchase price||Old rates||New rates|
|New stamp duty rates apply to house purchases between 8 July 2020 and 31 March 2021|