Budget 2010: Stamp duty threshold raised to £250,000 for first time buyers

Senior_Paper_Monitor

OK, I was wrong (still don't know how they are going to police this) .....

The Budget 2010: Stamp Duty Land Tax (SDLT)
Wednesday 24 March 2010

The two changes to stamp duty land tax (SDLT) are:

A two year holiday period from SDLT for first time property buyers.



Legislation will be introduced in Finance Bill 2010 to provide a Stamp Duty Land Tax relief where:

• an individual or individuals jointly purchase a major interest in land which is wholly residential, and
• the consideration is more than £125,000 but not more than £250,000, and
• that individual (or all of them) intends to occupy the property as his/her or their only or main residence and
• has or have not previously purchased such an interest or its equivalent anywhere in the world and
• the effective date of the transaction is on or after 25 March 2010 and before 25 March 2012.

More information, including questions and answers are in the following documents:

• Budget Note: Stamp Duty Land Tax – First Time Buyers
• SDLT: Questions and Answers and Technical Notes

A new rate of SDLT for expensive properties

At present the highest SDLT rate of 4 per cent applies to purchases where the consideration exceeds £500,000. Legislation in Finance Bill 2010 will add a new rate of 5 per cent for transactions in residential property where the consideration for the transaction exceeds £1 million.
The new higher rate will apply to residential purchases where the effective date (normally the date of completion) is on or after 6 April 2011.
More information is in

• Budget Note: Stamp Duty Land Tax Rates and Thresholds
• All other SDLT rates and thresholds remain unchanged and full details can be found in Press Notice 02

How do I (or anyone else) know if you have previously owned a property in Ghana ?

spitfire86

Thanks I think that means it doesn't matter if I've exchanged a it's payable on completion. Just need to find out if it's ok with shared equity now! I have e-mailed my solicitor so will just have to wait and see.

James

iahobson

iahobson wrote: »

Hi,

I exchanged contract on a property on Monday and due to complete in 2-3 weeks. I have not yet paid stamp duty. Where do I stand? My solicitor seems to think that I will still have to pay the 1% despite today's budget announcement.

Thanks,

Ian

I've read through all of the detail and the cut off is the 'effective date' of the contract. When I signed my contracts, there was no dates in there at all, and I think that the date entered would be the completion date. The hrmc realease states 'The effective date is normally the date of completion although there are some exceptions: see SDLTM 07600'...no idea to find that document so I can't tell what the exceptions are..!! Can anyone help?

Thanks, Ian

spitfire86

iahobson wrote: »

I've read through all of the detail and the cut off is the 'effective date' of the contract. When I signed my contracts, there was no dates in there at all, and I think that the date entered would be the completion date. The hrmc realease states 'The effective date is normally the date of completion although there are some exceptions: see SDLTM 07600'...no idea to find that document so I can't tell what the exceptions are..!! Can anyone help?

Thanks, Ian

Same here my solicitor had written "do not date" on everything I had to sign!

beecher2

iahobson wrote: »

I've read through all of the detail and the cut off is the 'effective date' of the contract. When I signed my contracts, there was no dates in there at all, and I think that the date entered would be the completion date. The hrmc realease states 'The effective date is normally the date of completion although there are some exceptions: see SDLTM 07600'...no idea to find that document so I can't tell what the exceptions are..!! Can anyone help?

Thanks, Ian

http://www.hmrc.gov.uk/MANUALS/sdltmanual/sdltm07600.htm

Harvie_2

We completed on Friday just gone...should we have known this was going to happen? Have I just made a hugely horrid mistake

gedhoney

I'm in the same position as some others whereby I'm an FTB but my girlfriend isn't.

Anyone know the consequences of purchasing just in my name to avoid paying stamp duty and then transferring to joint ownership at a later date?

JA1000

gedhoney wrote: »

I'm in the same position as some others whereby I'm an FTB but my girlfriend isn't.

Anyone know the consequences of purchasing just in my name to avoid paying stamp duty and then transferring to joint ownership at a later date?

Can you afford it on your own? If so I would do it, give it 6 months and add her in.

JA1000

Harvie wrote: »

We completed on Friday just gone...should we have known this was going to happen? Have I just made a hugely horrid mistake

Yep - Just call it a lesson in life.

Harvie_2

No what I mean is was this in the papers etc...