Stamp Duty

Starbrite

Bit confused here..

So stamp duty exemption for FTB is coming to an end in March 2012, this Tax is applied on anything over the value of £250,000 right?

So..

A, It's been scrapped because... the stamp duty land tax relief for first-time buyers has been ineffective in increasing the number of first time buyers entering the market.......

I think the 70K deposit requied for a 150k pad is stopping myself

B, Anything under 250k is stamp duty exempt, so in theory If I do get the 70k required deposit I can buy a 150k place without paying stamp duty?

C, This does not affect me in any way?:D

Please advise if I have toatally misunderstood stamp duty

Oh my source of info..

http://www.bbc.co.uk/news/business-15944999

FTBFun

I think the 70K deposit requied for a 150k pad is stopping myself

You don't need a 46% deposit to buy a property. Where are you getting this from?

cathh70

This is the bit you need to pay attention to (from your quoted weblink)

Stamp duty thresholds

1%: Properties of £125,000 to £250,000, but first-time buyers are currently exempt
3%: £250,000 to £500,000
4%: More than £500,000
5%: More than £1m, residential property only

holly_hobby

Stamp Duty Land Tax Relief (equal to zero liability) is available on the purchase of primary residence properites only.

All purchasers buying a property at 125k or less, receive SDLTR - so have zero stamp duty liability.

However, FTB for completions taking place prior to 25 March 2012 - currently qualify for an increase to SDLTR to 250k - so they have zero SDLT liability up to this amount and before the pivotal date.

For purchases that exceed the SDLTR threshold as noted above, the relevant bandings and stamp duty liabiliites have been duly listed above by Cath.

Hope this helps

Holly

Starbrite

FTBFun wrote: »

You don't need a 46% deposit to buy a property. Where are you getting this from?

I can borrow 100k from la bank max, everything where I live starts at 150k so add 20% deposit + missing 50K = 70k or 10% deposit with higher intrest rates = 60K

Thats how I worked that out, If things where about for 100k then I'll need 10k but alas in London those prices don't exist

Starbrite

cathh70 wrote: »

This is the bit you need to pay attention to (from your quoted weblink)

Stamp duty thresholds

1%: Properties of £125,000 to £250,000, but first-time buyers are currently exempt
3%: £250,000 to £500,000
4%: More than £500,000
5%: More than £1m, residential property only

Oh so anything over 125k has stamp duty, so I'll have to pay regardless

Thank you

FTBFun

Starbrite wrote: »

I can borrow 100k from la bank max, everything where I live starts at 150k so add 20% deposit + missing 50K = 70k or 10% deposit with higher intrest rates = 60K

Thats how I worked that out, If things where about for 100k then I'll need 10k but alas in London those prices don't exist

£150,000 property
£100,000 mortgage
£50,000 deposit

= 33% deposit. Your sums are a little off - you calculate the deposit on the total purchase price not the mortgage amount.

grizzly1911

Be nice if the stamp duty in each band only applied to the incremental amount.

S o a £00k property attracted 1% on the amount over £125k up to £250k and then 3% on the bit over £250K.

Applying 3% to the whole transaction is the bit that is stifling demand IMO.

holly_hobby

Starbrite wrote: »

Oh so anything over 125k has stamp duty, so I'll have to pay regardless

Thank you

If you are not a FTB yes and buying in excess of 125k - you will incur a 1% SDLT liability on the TOTAL amount of purchase.

i.e purchase price of 150K = £1,500 SDLT

Hope this helps

Holly

Starbrite

FTBFun wrote: »

£150,000 property
£100,000 mortgage
£50,000 deposit

= 33% deposit. Your sums are a little off - you calculate the deposit on the total purchase price not the mortgage amount.

Ah i see, didn't know that still it a lot of money to save!!