STAMP DUTY RELIEF FOR FIRST TIME BUYERS TO END 24 MARCH 2012
January 2012
The Government is to scrap first time buyers exemption from stamp duty from March 2012 as it says the relief is “ineffective”. In his Autumn Statement Chancellor George Osborne said that the policy had failed to get people on the property ladder and that the concession would be scrapped on the date initially planned. This is obviously disappointing and we here at Brain Chase Coles think it represented a valuable saving for cash strapped buyers.
The temporary exemption will mean first time buyers who were free from the 1% stamp duty on homes costing £250,000 or less will now have to pay stamp duty upon completion.
The existing stamp duty exemption will only apply if completion occurs by 23 March 2012. If you are a first time buyer this is the date upon which you will be handed the keys to your property. If exchange of Contracts has taken place but completion does not occur by 23 March 2012 you will be required to pay stamp duty.
After 23 March 2012, should you purchase either a freehold or leasehold property and the purchase price is more than £125,000 you pay stamp duty of between 1% and 5% of the whole of the purchase price. See table below for more details.
0%: payable on properties to £125,000
1%: payable on properties from £125,000 up to £250,000 (first time buyers exempt - ends
March 24th 2012)
3%: payable on properties of £250,000 to £500,000
4%: payable on properties of more than £500,000
5%: payable on residential properties of more than £1 million
It is not too late to instruct us now and we will use our best endeavours to complete your purchase before the deadline.
For more information about our Property Department, click here.
Please contact:
Jon Coles jcoles@brainchasecoles.co.uk
Lisa Rigby lrigby@brainchasecoles.co.uk
Jo Francis jfrancis@brainchasecoles.co.uk
