In September 2008 the Chancellor, Alistair Darling announced the increase of the Stamp Duty Land Tax (SDLT) threshold from £125,000 to include properties up to the value of £175,000 – a potential saving for homebuyers of up to £1,750
Mr Darling’s move came as part of his measures to stimulate a slowing housing market. However, just as the lower rate of VAT was temporary for one year, so was this increase.
This “Stamp Duty holiday” which was due to end in September was extended in this year’s budget to include transactions completed by 31 December 2009. With this date fast approaching, homebuyers, in particular first-time buyers are rushing to make sure they take advantage of this saving.
What's more, the reduction in VAT is also due to end on 31 December 2009, reverting from its current level of 15% to 17.5%, a further increase in costs for homebuyer wishing to purchase items for their new homes..
Steeles Law, who have offices in Norwich, Diss and London, have seen many changes in stamp duty in their 40 years of providing conveyancing services. Changes include seeing a complete freeze on stamp duty during the last recession; the change from a single threshold to a 4 band threshold system, introduced by the then new Chancellor, Gordon Brown; and the abolishment and introduction of the current stamp duty tax, the Stamp Duty Land Tax (SDLT) in 2003.
Melissa Richards, a conveyancer in the Real Estate Team at Steeles Law said “We are expecting December to be a busy month for completions. I would encourage those who are thinking of purchasing a property to act now, as the average house purchase transaction takes around 8 weeks to complete.”
Come 1 January 2010, the lower Stamp Duty threshold will revert back to £125,000 and will be payable at 1% on all properties purchased for a price between £125,000 and £250,000.