Stamp Duty Update 2011 Solicitors in Weybridge, Surrey

From 6 April 2011 a new increased stamp duty land tax (SDLT) rate of five per cent will apply to residential property purchases over £1m (previously four per cent). This means that the transaction will need to have completed before 6 April 2011 to avoid paying SDLT at the increased rate.

But there is good news for first time buyers. The starting threshold where the purchaser is a first time buyer of residential property is raised from £125,000 to £250,000. This applies where the completion is on or after 25 March 2010 but before 25 March 2012. There are conditions to be met. Please speak to Julie Fitzwater if you believe you could benefit from this relief.

'First-time buyers' stamp duty land tax (SDLT) relief expires on 24 March 2012, with no transitional provisions. Any transaction with an effective completion date of 25 March 2012 or later cannot benefit from SDLT relief, irrespective of the date of any contract or agreement'.

HM Revenue & Customs (HMRC) announced at the end of January 2011 that they are challenging stamp duty land tax avoidance schemes. This will involve comparing transactions reported to the Land Registry with land transaction returns made to HMRC and following up any discrepancies.