Introduction Background Note
7.SDLT is a transaction tax, payable by the buyer, on the purchase of land and property. SDLT is charged at varying rates, depending on the consideration given for a land transaction. In September 2008 the Chancellor announced, using regulation–making powers, that residential property worth not more than £175,000 would be exempt from SDLT for acquisitions made between 3 September 2008 and 2 September 2009 inclusive. These regulations will now be revoked and this section will ensure that the increased threshold of £175,000 for residential property will continue to apply beyond 3 September 2009 and will now end on 31 December 2009.
8.The effective date for the purposes of SDLT is normally the date of completion, not the date of exchange of contracts. However, the effective date may be earlier than the date of completion if the contract is substantially performed, for example, if the purchaser takes possession or pays the purchase price in advance of completion. Most residential contracts will not be substantially performed in advance of completion.