No stamp duty payable - disadvantaged area

stoker48

We are almost at the point of exchange and my solictor now advises me that as the property falls within a disadvantaged area no stamp duty is payable.
Flat costing £180,000 and we are not FTBs.
I have googled looking for explanation. Maybe its the end of a very long day or maybe I am thick but I cant understand it!!
Apart from a Mrs Bucket moment when I thought "do I want to buy in a disadvantaged area?" this can only be good news I assume.
Property is ex local authority but in a decent part of London. Well, I used to think so, now I am not sure!!!
Any comments very welcome

Thanks all

harz99

Try going onto the HMRC web site and searching for Disadvantaged Area Relief. That should give you most of what you will want to know.

RichyRich

Hi

Here's the details on disadvantaged area SDLT relief from HMRC.

Out of interest, whereabouts in London are you looking to buy? We have SDLT to pay in Bow (E3), negated because we're FTBs.

Cheers
Rich

mynameisdave

From a quick google search it seems the exemptin only refers to 150k and under. Not sure how current the information is but I would assume a solicitor should know what they are talking about

RichyRich

Oops, beat me to it harz99!

RichyRich

mynameisdave wrote: »

From a quick google search it seems the exemptin only refers to 150k and under. Not sure how current the information is but I would assume a solicitor should know what they are talking about

yes, that explains why we'd have some to pay if we weren't FTBs

stoker48

Once again thanks to everyone for their interest and information.

We are buying in NW6, which is West Hampstead. Ex local authority but nice little estate. I will read the website, thanks for that.
Still astounded that the government not trying to squeeze the last drop out of house buyers.:)

Richard_Webster

Disadvantaged area relief applies to 1991 Local Government wards that were thought in some way to be disadvantaged. The ward boundaries would be to some extent arbitrary because they would be drawn to equalise electorates inwards through an authority's area. So you can get some OK areas put together with what some might call "rough" areas and those buying benefit.

For instance the centre of Southampton has been filled with private flats and areas that were run down offices and warehouses related to the port have now become trendyfied. Nevertheless the ward in question, Bargate Ward, is still a disadvantaged area where if you buy your house/flat for up to £150K you do not pay SDLT.

Evilm

RichyRich wrote: »

yes, that explains why we'd have some to pay if we weren't FTBs

For information should you have not been FTB's and buying at £150,001 then you would have to pay ALL of the stamp duty due not just the portion over £150,000.

OP, I can't see how your solicitor thinks you shouldn't be paying stamp duty since you say you are purchasing at £180k, That should mean you should be paying £1800.00 as its over the disadvantaged area allowance.

mostlycheerful

“Property is ex local authority but in a decent part of London. Well, I used to think so, now I am not sure!!!”

Perhaps go and hang around for a few hours during the day and then again at night and in particular on Friday and Saturday nights and see how “disadvantaged” it is. It might be fine or alternatively it might be quite an eye opener. If it’s nice and civilised then great. But if there are packs of feral “gangstas” and thugs and junkies and prostitutes everywhere then you may want to think again. A lot of the subhumans tend to be in evidence at night and not so much during the day so for a full research some night time viewings and, as I say, at the weekends, would probably be necessary to pin it down. Perhaps let us know if you do this, it could be interesting and might be of use to other people faced with this kind of question.