SDLT holiday is over
A number of coronavirus support schemes came to an end in September, including the SDLT holiday. What does this mean for transactions which have not yet completed?
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Government launches consultation package on HMRC powers and tax administration
The government has launched a wide-ranging package of consultations on tax administration, including proposals to strengthen HMRC's debt recovery powers, modernise tax agent regulation and expand the use of digital services. Several of the measures could have significant implications for taxpayers and advisers. What has been proposed?
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What are HMRC’s new procedures for export evidence?
HMRC has updated its guidance about the proof of export you must retain if you ship goods abroad and zero-rate the sales. How will the new guidance affect your business?
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Getting out of the child benefit tax trap
You expect to earn over £60,000 for this tax year which means you may have to pay back some or all of your family’s child benefit due to the high income child benefit charge (HICBC). Is it possible to reduce the charge?
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.
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