STAMP DUTY HOLIDAY COMES TO AN END – TAKE ACTION NOW

In September 2008 the Chancellor of the Exchequer using regulation making powers, announced a stamp duty land tax holiday for all individuals purchasing residential property between 3rd September 2008 and 2nd September 2009 inclusive.  This applied where the chargeable consideration for the property was no more than £175,000.

It was subsequently announced that an extended holiday from stamp duty land tax would apply to acquisitions of qualifying properties until 31st December 2009.  After 31st December 2009 the stamp duty land tax threshold for residential property will revert to £125,000 and anybody buying a property after that date for between £125,000 and £175,000 will have to pay stamp duty land tax at 1%.  Properties purchased for between £175,001 and £250,000 will of course continue to be charged for stamp duty land tax at 1%.

The date with which you as a buyer must be concerned is the “effective date” which 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 contact is “substantially performed” – for example if the purchaser takes possession or pays the purchase price in advance of completion.

If you are already in the process of buying your property and are hoping to take advantage of the current stamp duty land tax holiday you must ensure that you complete before the end of this year.  Alternatively, if you are considering buying a property of between £125,000 and £175,000, then contact us for a quote and as soon as you have secured your purchase we will do our best to complete the transaction before the end of the year.

October 2009