On 2nd September 2008 the Government announced a increase in the threshold for stamp duty land tax from £125,000 to £175,000. This situation changed on 1st January 2010.

With the average property in August 2008 costing £165,000 this attempt to regenerate a failing property market was seen as a positive move by buyers and professionals alike, by August 2009 the average price had fallen to £158,000 but buyers continued to benefit from the increased threshold. In 2008 around half of the 90,000 home purchases completed each month were on properties worth less than £175,000.

On 1st January 2010 the threshold returned to £175,000, properties in disadvantaged areas revert to £150,000.

If you buy a freehold or leasehold residential property worth less than £125,000 then no stamp duty land tax is payable, £125,001 - £250,000 tax is payable at 1%, £250,001 - £500,000 3% and thereafter 4%.

The buyer is responsible for completing and returning a Land Transaction Form and pay any tax due. As part of the completion process we will handle this for you, we will complete the form, send it to you for approval and signature and then submit the return to HMRC on your behalf before paying any tax due and registering your title at the Land Registry. A return is required on any transaction over £40,000, so even in cases where no tax is payable it is usually necessary to submit the Transaction Form.

For further information on Stamp Duty Land Tax, contact Susan Drakeford.