stamp duty

[tali122]

is a first time buyer purchasing a property for 125K exempt from stamp duty? if not what are stamp duty exemptions?

[thikasabrik]

Last year the Chancellor declared he intended to help first time buyers by doubling the stamp duty threshold to �120,000.

Where I live you'd be lucky to find a bedsit to buy for �120K so his generosity wasn't really that generous!

[Buenchico]

As the inappropriately named Thikasabrik has stated, properties sold for up to �120,000 are exempt from what is now known as SDLT (Stamp Duty Land Tax).

A property sold for �125K would attract SDLT at a rate of 1%.

For further information, see this pdf from HMRC:
http://www.hmrc.gov.uk/guidance/sd2.pdf

Chris

[Oneeyedvic]

just to clarify Chris's reply - that is 1% of the total - �1,250

NOT 1% of the difference between �125 and �120.


This means that if you ar ebuying over �120k you are mimeadiatley adding on over �1000. Why not make an offer of �120k on hte house, and if they won't budge, go up to �120k for the house and �2000 for fixtures and fittings.

[charliebaps]

Also check if your purchase is in a regeneration area. Because my flat was over under 150K in a designated regeneration area (google this to find areas) I did not have to pay stamp duty.

[tali122]

charliebaps has the vital info regarding disadvantaged areas exemptions

[Buenchico]

Just in case you missed this afternoon's budget statement:

Gordon Brown today announced that the exemption for SDLT is to rise to �125k. I assume that this will apply from the start of the new tax year, next month.

Chris