On the 25th March 2010 HM Revenue & Customs introduced Stamp Duty Relief for first time buyers. The Finance Bill 2010 stated that any individual (or individuals if buying jointly) who purchased an interest in land where the consideration was not more than £250,000.00 and who intended to occupy the property as their main residence, were exempt from paying Stamp Duty Land tax. The relief only applied to those who had not previously owned a property, and if more than one, both of them, either freehold or leasehold, in the UK or anywhere else in the world.
This relief was only introduced for a set period and any first time buyers that are in the process of buying a property need to complete the purchase on or before the 24th March 2012 in order to qualify. Any transaction that completes on or after the 25th March 2012 will not benefit from the relief, irrespective of the date of exchange of contracts, and will attract Stamp Duty at the following rate:
|Purchase price/lease premium or transfer value||SDLT rate|
|Up to £125,000||Zero|
|Over £125,000 to £250,000||1%|
|Over £250,000 to £500,000||3%|
|Over £500,000 to £1 million||4%|
|Over £1 million||5%|
For further information, please contact Tom Walsh.