Stamp Duty in a Disadvantaged Area

Badger_Lady

As far as I know, as soon as you go over the qualifying limit, the full stamp duty of 1% kicks in. If you offered £150,000 on the nose, you would be exempt.

Maybe it's worth having a word - the vendors may offer to pay your stamp duty in order to keep the sale at its current value..? (They would lose £3k by dropping the price or £1.5k by paying your duty).

bid2win

does anyone know how far back this goes. i believe my mums house falls under this category and we bought the house back in 1990

Jorgan_2

bid2win wrote: »

does anyone know how far back this goes. i believe my mums house falls under this category and we bought the house back in 1990

The raised threshold for a disadvantaged area has been in effect for about 7 years, I don't believe you can claim for properties bought before the scheme came into effect.

bid2win

i see, this seems very under the radar to me, and surely there would of been more news about it from complaining buyers who purchased just before this came into place? i am purely speculating here ofcourse.
Any solicitors available to veryify this plz.. ?

A_Nice_Englishman

bid2win wrote: »

i see, this seems very under the radar to me, and surely there would of been more news about it from complaining buyers who purchased just before this came into place? i am purely speculating here ofcourse.
Any solicitors available to veryify this plz.. ?

The old rates of stamp duty are here
http://www.hmrc.gov.uk/stats/stamp_duty/00ap_a9.htm

How much did you pay for the property in 1990?

(I'm not a solictor, by the way)

bid2win

75k , i believe it was 1% at the time,

(no worries any bit of help counts)

bid2win

Transactions undertaken before 17 March 2005

For transactions where the effective date was between 1 December 2003 and 16 March 2005 (inclusive), disadvantaged areas relief was available for residential transactions on the same basis as for transactions since then.
In addition, unlimited relief was available for transactions involving non-residential (commercial) property situated in qualifying areas.
Relief is also available under transitional provisions for non-residential transactions where

• a contract was entered into and substantially performed on or before 16 March 2005, or
• a contract was entered into on or before 16 March 2005 and completed or substantially performed after that date, provided that there is no variation or assignment of the contract or sub-sale of the property after 16 March 2005 and that the transaction is not in consequence of the exercise after 16 March 2005 of an option or right of pre-emption.

The Birmingham Stamp Office can give further advice about whether a transaction falls within the transitional rules. If you wish to claim non-residential disadvantaged areas relief under the transitional provisions, please send your land transaction return to the Birmingham Stamp Office, not to the usual address (correspondence to be marked with DAR query).

This meens no in simple words? and sorry for posting in 2 posts. im actually confusing myself now. will use this post here fron now on

Badger_Lady

bid2win wrote: »

This meens no in simple words?

looks like it to me

Doozergirl

http://www.hmrc.gov.uk/SO/sp1_2004.htm

Disadvantaged Area Relief (DAR) was introduced on 30 November 2001. Any property in an area is exempt in purchases up to £150,000. (Sorry to go over old ground)

There was no big stink or kick up because it just didn't exist and was simply not available. When Government introduces these things, it tends to happen overnight. When they put Child Benefit up, you can't go kicking up a fuss because it wasn't higher last week. It's just a nice thing if you fall into the right group at the right time.

When we bought our flat in an exempt area in August 2001 we had to pay Stamp Duty. Two months later, the DAR was introduced. When we sold it two years later, our buyers did not have to pay Stamp Duty. It's just one of those things; when we bought, DAR did not exist so we simply didn't qualify.

Your quote is hard to read it out of context but I've found the webpage and that section appears to relate to the abolition of disadvatanged area relief on commercial property It isn't relevant to this conversation.

Canucklehead

Good afternoon: We bought a property in a D.A. just after the Chancellor introduced the measure in November 2001. Our solicitors were not aware of the ward's stamp duty exempt status (and at the time thought I was talking out of my hat)until I provided them with a link to the relevant HMRC website page ..took 3 months to get the cash back but with interest;)

Canucklehead