Stamp duty over £175k

VKay

Happy bank holiday all!

Would appreciate advice... I know at the moment (til Dec 09?) stamp duty on houses between £175k and something (not sure what-as it's way beyond my wildest dreams!)is 'postponed' .

We are slowly saving and househunting and as we add to our savings I think we may begin to look at houses around £175k plus maybe 5K if we're very lucky. I'm wondering if anyone knows if the stamp duty for this bracket will continue to be zero in the new year - don't think i've read anything in the papers about it being extended?

Also if we began to purchase a house say in October/November 09 for £175k and didn't exchange and complete til Jan 2010 would we have to pay stamp duty? Or would it be a 'no' because the purchase had started before the deadline?

Any ideas? Thank you.

googler

No, it's the stamp duty in the range £125k - £175k that's been reduced to zero at the moment.

£175k - £250k attracts 1% stamp duty.
£250k - £500k attracts 3%.

The official version is here at HMRC

VKay

Ahh whoops got muddled there! Thanks for setting me straight googler.

So if I agree to purchase a house for £178k in a couple of months but don't complete til the new year I would have to pay 1% SD?

Has anyone heard about the freeze under £175k being extended past Dec 09. Surely it would be damaging to the market not to extend it?!

googler

If you buy at £178k completing now, you'll pay 1%, if you complete sometime in the future, it's likely to STILL be 1% unless the chancellor changes the rates and thresholds.

VKay

Christ sorry- quite slow to grasp that point. Thanks again.

tek-monkey

Annoyingly that puts the new place at close to £180k, that 3K over costs you £5k! Houses that close to the bracket must be a !!!!!! to shift, as I'd want to drop it back to £175k max.

Not that I could afford that, I was maxing out at £132k!

VKay

Well I'm talking hypothetically tek- monkey but that is the dilemma would could face.

I feel we're better off under £175k (more realistic for us anyway) but if we don't buy before Xmas may be paying SD anyway!!

lowtidesurf

Hello

I am just purchasing a house for 177,000 but am not paying any stamp duty as we have arranged to pay 174,999 for the house and 2000 worth of "upgrades" i,e bathroom and kitchen upgrades.

This can be done with most property's just over the 175,000 limit, just tell your estate agents you want to avoid stamp duty by paying for "upgrades" even carpets can be written is as upgrades. Obviously you cannot have 20,000 worth of upgrades so dont take the micky

Hope this has helped

VKay

Wow- 'upgrades', eh?! is that legal??
Also is anything ACTUALLY being upgraded, do you have to prove this if asked?

Thanks for letting me know!

baby_boomer

With an election in the first half of 2010, what are the odds on Gordon reintroducing the 1% Stamp Duty on houses between £125K and £175K?

Nil? :rotfl:

lowtidesurf

Contracts have not yet be drawn up yet, but it is written in our heads of agreements that we will be paying for kitchen and bathroom upgrades. We are having a fridge, cooker and double oven in the kitchen and a power shower in the bathroom. These are standard with the house but are being wrtten as "upgrades"

Not sure about the legality but the solistors and estate agents are happy so i assume its ok