Budget change to Stamp Duty - The Law

timmyt

FIRST TIME BUYERS ONLY!!!


Chancellor Alistair Darling has today effectively increased the starting threshold of Stamp Duty for first time buyers to £250,000, doubled from £125,000. It is in fact a relief from Stamp Duty and must be claimed on the stamp duty form that your conveyancer will fill in.

This relief is with effect from midnight tonight and will last for 2 years.

(To fund this loss to the Revenue, properties over £1m will now pay 5% stamp duty from April 2011).

Legislation will eventually be introduced in Finance Bill 2010 to provide for this Stamp Duty Land Tax relief where....AND THIS IS THE FINE PRINT FOR WHO IS A 'FIRST TIME BUYER':

• an individual or individuals jointly, purchase a major interest in land (freehold or leasehold) 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 (or owned e.g inherited or received by gift) such an interest or its equivalent anywhere in the world and
• the effective date (usually completion) of the transaction is on or after 25 March 2010 and before 25 March 2012.

Your conveyancer will need you - at your risk for providing false information to the Revenue with the fines and criminal sanctions that always apply - to answer two questions:

1. do you intend to occupy as your main residence
2. have you never owned (in your sole name or jointly) any residential property
anywhere in the world

If you cannot say yes to the above 2 points, then you won't receive the relief.

Further pdf guidance notes are avilable at (with Q&As):

http://www.hmrc.gov.uk/budget2010/sdlt.htm

superfran_uk

Thanks for this - although i think you mean 'no' on Q2!

timmyt

blast, missed off the letter 'n' from 'ever'
thanks, well spotted!!!