Stamp duty land tax first time buyer relief
This is a reminder that stamp duty land tax first time buyer relief expires on 24 March 2012. Any transaction with an effective completion date of 25 March 2012 or later cannot benefit from stamp duty land tax first time buyer relief, irrespective of the date of any contract or agreement.
This means that if you are a first time buyer looking to buy a property over £125,000 but under £250,000 then now is the time to do it. Otherwise there will be stamp duty of 1% to pay on the purchase price.
If you need to get moving quick then contact us for a quote.
Stamp Duty Land Tax (SDLT) is charged on land and property transactions at different rates for different types of property and values of transaction. The tax rate and payment thresholds vary according to whether the property is residential or non-residential and also if it is a freehold or leasehold. There are some types of SDLT relief available for certain types of property or transaction.
SDLT rates on residential property
The rates below are for all freehold residential purchases or transfers and the premium paid on a new lease or assignment of a current lease. (If the property is used for both residential and non-residential use the rates differ.) If the transaction is purchase of a new lease with a substantial rent there may be additional SDLT to that shown below, based on the rent.
Residential land or property SDLT rates and thresholds
|Purchase price/lease premiumor transfer value||SDLT rate||SDLT rate for first-time buyers|
|Up to £125,000||Zero||Zero|
|Over £125,000 to £250,000||1%||Zero|
|Over £250,000 to £500,000||3%||3%|
|Over £500,000 to £1 million||4%||4%|
|Over £1 million||5%||5%|
First time buyers
The first time buyer’s £250,000 threshold applied from 25 March 2010 up to 24 March 2012 inclusive. From 25 March 2010 to 24 March 2012, first-time buyers can claim relief from SDLT if the amount paid for the property is under £250,000. This relief applies whether or not the property is in an area designated as disadvantaged. (If the property is in an area designated by the government as ‘disadvantaged’ different rates and thresholds may apply.)