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In a move to help the property market and
first time buyers, Alistair Darling has
introduced a Stamp Duty Land Tax (SDLT)
exemption or holiday for purchases of
residential property from 3 September 2008
to 2 September 2009 (inclusive). The
exemption effectively raises the current
nil rate band of £125,000 (£150,000 in
disadvantaged areas) to £175,000 for the
period of one year only.
The effect of this increase is that
where residential property is bought or
leased (for in excess of 21 years) costing
not more than £175,000, no SDLT will be
payable. SDLT continues to be payable at
1% on property from £175,000 to £250,000
before the percentage rises.
The transaction must still be reported
using the relevant return form SDLT1 even
though no SDLT is payable.
Internet links:
HMRC guidance SDLT and
SDLT calculator |
