Less than three weeks until Stamp Duty relief ends
Published: 20/03/2013
Stamp duty relief currently available for properties in ‘disadvantaged areas’ will come to end on 6th April 2013, HMRC has announced.
The scheme was aimed to encourage ownership in selected areas and was available on residential properties with a purchase price of below £150,000.
However, after reviewing the incentive, HMRC has found no evidence that supports its aim and has subsequently opted to terminate the scheme.
Understanding Stamp Duty
All properties valued above £125,001 are subject to Stamp Duty with fees calculated based on the property purchase price.
| Property purchase price £125,001 and £250,000 |
Property purchase price £250,001 and £500,000 |
Property purchase price £500,001 - £1 million |
Property purchase price £1,000,001 - £2 million |
| 1% of the property price | 3% of the property price | 4% of the property price | 5% of the property price |
| Example Property price = £200,000 Stamp Duty = £2,000 |
Example Property price = £400,000 Stamp Duty = £12,000 |
Example Property price = £750,000 Stamp Duty = £30,000 |
Example Property price = £1,500,000 Stamp Duty = £75,000 |
In order to provide you with a realistic expectation of the fees involved in purchasing property we always include Stamp Duty, as well as all other service charges, in our original quote. Some solicitors don’t like to be as upfront as us however so if you are shopping around for a quote, make sure all fees are included in your quote. If not you will end up paying much more than you may have expected.
To see if you qualify for Stamp Duty Relief, visit the HM Revenue and Customers website. Claims for relief for purchases of residential property must be submitted by 5th May 2014.
Content correct at time of publication