Tuesday, 17 November 2009

Stamp Duty Land Tax Increase - complete purchases ASAP

It's extremely difficult for first time buyers to be able to take their first step onto the property ladder.

Stamp Duty Land Tax makes a hefty dent into any savings put aside to purchase a house. In order to help first time buyers the government raised the SDLT exemption to £175,000.

Currently, buyers purchasing properties over £175,000 are liable to pay 1% of the pruchase price in SDLT.

Over £250,000 to £500,000, 3% is required and
Over £500,000 4%, is required

BUT from the end of the year the threshold will return to £125,000. This will cost the buyer an extra £500 on a £175,000 property.

So, if you're waiting for a property purchase to complete this year, you may want to try to push it on a little quicker. I'd rather have £500 to treat myself for Christmas than let it go in Stamp Duty Land Tax!!

For further details - Home Buying to Get More Costly by the End of the Year