Stamp Duty Changes: Lenders fail to provide completion funds in time to avoid paying the additional SDLT
As of 1 April 2016, any purchases of additional properties (second homes and buy to let properties) are now required to pay an extra 3% of Stamp Duty Land Tax (SDLT).
SDLT used to be payable on each part of the purchase price which fell within a fixed band. The new additional rates are:
Band Existing residential SDLT rates New additional property SDLT rates
£0* – £125k 0% 3%
£125k – £250k 2% 5%
£250k – £925k 5% 8%
£925k – £1.5m 10% 13%
£1.5m + 12% 15%
If you wanted to avoid paying the additional SDLT, you had to complete (not just exchange) on any second home purchase by midnight on 31 March, 2016.
This inevitably led to a rush to complete before the deadline. Unfortunately, through no fault of their own, a number of people have been let down by their lenders failing to provide the completion funds required to complete prior to the SDLT deadline resulting in them having to pay the additional SDLT rates.
How can Ellis Jones help you?
Ellis Jones Solicitors act for a number of clients where their Lenders have failed to provide the completion funds prior to the SDLT changes taking effect, meaning that they have had to incur the additional SDLT charge. They are now seeking to claim the additional SDLT back from the Lender.
If you wish to discuss a potential claim or complaint then please contact the Banking and Finance Litigation Department on 01202 525333 or Banking&Finance@Ellisjones.co.uk.