Stamp Duty Countdown
The government withdrew stamp duty tax for First Time Buyers in April 2010 for property transactions under £250,000. It was only a temporary measure and is due to end on 24th March 2012. It was designed to help boost the housing market and to make it less expensive for individuals to step onto the property ladder.
The rate of stamp duty chargeable is a percentage of the final transaction cost, and is payable by the purchaser. Stamp duty rates increase in line with property value and there are a number of stamp duty thresholds giving clear demarcation between the different rates. Stamp duty rates are different for residential and commercial properties.
The table below indicates the current stamp duty rates for UK residential properties.
Stamp duty rates for first time buyers
| Up to £250,000 | 0% |
| £250,001 - £500,000 | 3% |
| £500,001 - £1,000,000 | 4% |
| £1,000,001 and over | 5% |
New 2012 stamp duty rates
| Up to £125,000 | 0% |
| £125,001 - £250,000 | 1% |
| £250,001 - £500,000 | 3% |
| £500,001 - £1,000,000 | 4% |
| £1,000,001 and over | 5% |
"It's worth bearing in mind" says Thomas Morris Branch Manager Steve Thompson. "Any first time buyers looking to buy before Christmas should still be able to benefit as long as they ensure that the purchase goes through before the deadline on March 24th 2012. They should make sure that their conveyancers are aware of the situation - as many seem to have forgotten."
For further information regarding matters of property law, contact Thomas Morris Conveyancing on 0845 650 0018 or visit www.thomasmorrisconveyancing.co.uk
