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First Time Buyer's Relief : Stamp Duty Land Tax (SDLT) on Residential Property

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The Government is lending a hand to 'First Time Buyers' in offering them relief on the biggest ancillary expense attributable to purchasing a new home, Stamp Duty Land Tax. Stamp Duty Land Tax is normally charged on all land transactions in the UK. Dependent on the type of property and the value of the transaction, the tax is charged at different rates and has different thresholds. Normally, if you are purchasing a residential property at a price of £125,000 or below, no Stamp Duty Land Tax is payable. Thereafter, tax is payable at a rate of 1% of the purchase price. This rate increases to 2% for purchase prices of up to £250,000.00, 3% up to £500,000.00, 4% up to £1,000,000.00, and 5% on purchase prices above this limit. However, First Time Buyer's relief is available for all first time buyers who complete their purchases before the 24th March 2012 on homes purchased for £250,000.00 or less. Eligibility depends upon a number of conditions, the most important of which is that the Buyer has never owned their own home before. It may not be too late to claim the relief before the 24th March 2012 deadline, even if you are still at the early stages of purchasing your new home. Please do not hesitate to get in touch with Our Conveyancing department here at Gepp & Sons, who would be delighted to assist you. Contact Toni Young on 01245 343999 or youngt@gepp.co.uk alternatively Spencer Davis on 01245 343998 or daviss@gepp.co.uk . The above is not legal advice; it is intended to provide information of general interest about current legal issues.