Temporary cut to stamp duty land tax (“SDLT”) on residential property purchases.
The Chancellor announced further measures to mitigate the effect of the Coronavirus crisis on the general economy and the housing market in particular. He announced an increase of the tax-free band on residential purchases from £125,000 to £500,000 with effect from 8th July 2020 up to 31st March 2021. SDLT applies to all residential property purchases in England.
For purchases above £500,000, the standard SDLT rates and thresholds continue to apply, but the ‘slice’ system means that this new measure will help all purchasers – you do not lose the benefit if your purchase price exceeds £500,000.
The existing 3% second home surcharge will continue to apply, so buyers of second homes will pay SDLT at only 3% up to £500,000.
Overall, the measure can provide an SDLT saving of £15,000 for both standard and additional rate SDLT payers.
The changes apply to transactions which complete between 8 July 2020 and 31 March 2021 inclusive.
What this means for buyers
For an owner-occupier buying before 31st March 2021 at a purchase price of £499,000, the tax will now be zero – a saving of £14,950. For those who were considering moving, this is indeed very welcome help.
SPRING IS AROUND THE CORNER, AS IS EASTER
As any divorced or separated parent knows, Easter egg hunts feature high on a family’s list of seasonal traditions.
This is really about the children, not the parents (or the grandparents), so it is important to talk things through with the other parent and think about what impact the arrangements will have on your children. Whilst parents and children alike want to see each other, sometimes for practical reasons, this is not always possible, so try and be flexible and consider alternatives. Do agree what will happen well in advance, such as where the children are going to spend Easter as well as the Easter holidays, how much time they will spend at each home, when they will see the grandparents and how they will get from one place to another.
Jane O’Vel our Family Solicitor says;- ‘Think about coordinating Easter egg hunts to avoid tension and conflict between yourselves and as a result this will create less stress and more enjoyment for your children. In the end this is all about them’.
Careful planning can make this time very enjoyable, both for parents and children as well as grandparents and it is never too early to start this planning process. However if things are still a bit too raw for the moment and you find this too difficult, perhaps you could try and have a word with your solicitor; he or she may be able to help…
Blog written – March 2020. Do not rely on the information that you have read here without contacting one of our fee-earners to take individual advice first
Wills and Probate
INTESTACY RULES CHANGE ON 6th FEBRUARY 2020
If you die without making a will, then your estate will be divided up under the rules of intestacy. Some people will inherit automatically, others who you may want to help, may not inherit at all.
From 6th February 2020 a spouse or civil partner will inherit the first £270,000 (previously £250,000). If you have children, the rest will be split between your spouse or civil partner and your children. If you do not have children, then everything passes to your spouse or civil partner. The rules then take matters further if you are not married or in a civil partnership. These arrangements are useful when your other half dies unexpectedly, but may not put in place what you want. If you want to be sure of what happens, you need to put a will in place.
Greta Tancred our Private Client Solicitor said;- “Do note that to inherit under intestacy rules you have to be in a legally binding relationship”
Even if you lived together for 40 years, you will not automatically inherit. Also if either of you married but simply split up many years ago, if you did not divorce, the legal spouse or civil partner will still inherit. Finally, if you had a will in place, but decided to (re) marry, your will is automatically revoked and again your estate will pass under the intestacy rules.
Getting a will in place will give you peace of mind.
Blog written – February 2020. Do not rely on the information that you have read here without contacting one of our fee-earners to take individual advice first