Lees Solicitors - Homeowners to have a happier Christmas if they complete on their property purchases prior to the Christmas break ... Joanne McNally

Residential Conveyancing News

Homeowners to have a happier Christmas if they complete on their property purchases prior to the Christmas break ... Joanne McNally


Homeowners to have a happier Christmas if they complete on their property purchases prior to the Christmas break ... Joanne McNally

Stamp Duty Land Tax (SDLT) is charged on land and property transactions in the UK and is paid to HM Revenue & Customs. The tax is charged at different rates and has different thresholds for different types of property and different values of transaction.

On 1st January 2010 the Stamp Duty Land Tax nil rate band for payment of tax will be lowered from £175,000 to £125,000. This signals the end of the "holiday" period for Stamp Duty Land Tax which started on 3rd September 2008 and which will continue to run until 31st December 2009 (inclusive). Any transaction completed during this period with a value of £175,000 or less does not attract payment of Stamp Duty Land Tax and it is for this reason that purchasers are wanting to complete on their property purchase transactions prior to the Christmas Break. At Lees Solicitors LLP, we are using our best endeavours to ensure that where practicable, we are achieving completion dates prior to the Christmas Break so as to save our clients the Stamp Duty Land Tax that they would otherwise have to pay if the matter were to be delayed beyond 31st December 2009.

Any transaction that completes on or after 1st January 2010 and is valued between £125,000 to £175,000, will attract Stamp Duty Land Tax at a rate of 1%. For example, the Buyer of a property with a purchase price of £160,000 will be liable for tax at the rate of 1% of the overall value of the transaction. In this case the tax liability would be £1,600.

The band rates for SDLT as of 1st January 2010 will be as follows:

Value of Transaction                                        Rate
Up to £125,000                                                    Zero
Over £125,000 to £250,000                                1%
Over £250,000 to £500,000                                3%
Over £500,000                                                     4%

It is important to recognise that the liability for tax becomes due upon completion of the purchase and not exchange of contracts. If you have not completed your transaction on or before 31st December 2009, you will have to pay Stamp Duty Land Tax at the rate of 1% if the purchase price of your property is in the band of transactions that is over £125,000 up to £250,000.

We at Lees Solicitors LLP will continue to monitor the changes in Stamp Duty Land Tax legislation and are always happy to assist with any enquiries you may have regarding purchasing a property. If you are looking to sell or purchase a property, please contact the property department at Lees Solicitors LLP on 0151 647 9381 where we will provide an estimate of our legal fees together with a breakdown of the additional search fees required in each case. This will enable you to budget properly for your transaction. Alternatively please email us at info@lees.co.uk

Joanne McNally

 

This article provides a summary of a recent change in law. It is intended for general information purposes only and is not to be relied upon. It does not constitute legal advice and should not be treated under any circumstances as a substitute for legal advice. Lees Solicitors LLP does not accept any responsibility for any loss that may arise from reliance upon the information contained within this article. The copyright in this article is owned by Lees Solicitors LLP and permission must be sought before reproduction or publishing.


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