Stamp Duty Land Tax (SDLT) on a residential property worth over two million pounds will be due on transactions completed on or after 22 March 2012 at 7%. The percentage is payable on the whole of the purchase price. For example if you buy a property at £2,500,000 you will be liable for SDLT in the sum of £175,000 on completion. This represents an increase of 2% in SDLT from before the 2012 Budget.
In addition, residential properties purchased by certain persons, including corporate bodies, worth over two million pounds will from 21 March 2012 pay SDLT at 15%. The government has sought to close a loophole which allowed anyone buying property held by a limited company could avoid SDLT by acquiring the company’s shares rather than purchasing the property directly.
Removal of first time buyers SDLT relief
First time buyers buying properties worth up to £250,000 can no longer benefit from the SDLT exemption as from 25 March 2012. Prior to the 2012 Budget, to encourage first time buyers to get onto the property ladder, a first time buyer would have paid SDLT in the sum of £0 on a purchase of £250,000 whereas now £2,500 SDLT would be payable.
Please contact us for more information on the residential property and commercial property services we offer.
Hine Solicitors underwent a rigorous application and assessment by the national Law Society to become part of CQS initiative which recognises high quality in residential conveyancing.