Second-home buyers and investors in residential property risk paying more than five times the current rate of stamp duty land tax if they fail to complete their purchase by midnight on March 31.
The warning comes from the Bristol office of accountancy, investment management and tax group Smith & Williamson, which pointed out that the start date of the new rates – April 1 – is earlier than the April 6 start of the tax year when people may expect them to take place. 
The change applies to most second homes, buy-to-let or residential investment property purchases unless contracts were exchanged on or before November 25 last year.
Helen Demuth, pictured, a partner in Smith & Williamson’s Bristol property team, said: “The timing of this tax hike might appear unusual for individuals used to tax changes which normally take effect from the start of the tax year on April 6.
“Missing the date by just one day could cost thousands of pounds and I fear many people could inadvertently miss out.
“Confirmation of how the new rules will apply is expected in the Budget on March 16 – potentially just days before the new charges are introduced.”
The average cost of a property in the South West is now £196,134.00, according to latest Land Registry figures.
So anyone buying a property for this price before midnight on the March 31 would pay stamp duty land tax (SDLT) of £1,422.68.
However, if the same property was bought just a day later, the SDLT on second homes or residential investment properties in this price bracket would increase to £7,306.70.
SDLT is paid on property when the purchase is completed and is calculated according to the purchase price. Anyone buying residential leasehold property pays SDLT on the purchase price of the lease.
SDLT generated £10.7bn for the Exchequer during 2014-15 according to the statistics from HMRC. A number of other business tax changes will also occur on April 1.
