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September 8, 2008
As you may be aware, due to the current market difficulties, the Government announced on 3rd September 2008 that for one year, the stamp duty land tax threshold would be increased from £125,000.00 to £175,000.00.
This means that if you are buying a property for £175,000.00 or less and you complete the transaction before 2nd September 2009, you will be exempt from the requirement to pay stamp duty land tax.
On current information, it appears that on 2nd September 2009, the SDLT bands will revert to the usual thresholds i.e. £125,000.00 or less = no duty, £125,001.00 to £250,000.00 = 1%, £250,001.00 to £500,000.00 = 3%, £500,000.00 plus = 4%.
3 Responses to “Stamp Duty Land Tax – £175,000.00 new limit set by Government”
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February 18th, 2009 at 10:34 pm
great tips. I enjoyed reading this
July 3rd, 2009 at 7:52 pm
Im moving house and the property im buying is £435.000 its to improve our qualiyy of lifethat we are moving to the country and the only thing that i can ask or wish that the stamp duty would be less like a % it woold be brill. Thank You
July 16th, 2009 at 7:58 pm
You might want to have a look at the possibility of using chattels to reduce the SDLT chargeable Amanda.
Have a look at http://www.hmrc.gov.uk/sdlt/transaction/value.htm. The relevant section is as follows;-
“Calculating the value of the chargeable consideration
The value of the chargeable consideration includes anything paid for assets that form part of the land or property.
These assets can include:
* buildings and structures that are part of the land, such as farm buildings
* fixtures and fittings, including bathroom and kitchen fittings, but not freestanding furniture, carpets or curtains
* intangible assets, such as the value of goodwill attached to a business
It also includes the estimated value of any undertaking to carry out work or services, such as a promise from the vendor to carry out repairs to the property.
The chargeable consideration also includes any VAT payable on the transaction.
Items not included in the chargeable consideration
When the purchase price includes a payment for items that are not part of the chargeable consideration, those items must be valued at a rate reflecting their fair market value. For example, if carpets are included in the sale of a flat, the purchaser and vendor must agree a fair price which reflects their age and quality. This is then subtracted from the price paid to find the chargeable consideration.
The same rules apply if moveable assets such as machinery are included in the sale of a business. The portion of the purchase price allocated to such assets must be seen as fair and reasonable. ”
The relevant bit for you is “Items not included in chargeable consideration”. Basically, what you can do is agree a separate price with the sellers for “chattels”, which is deducted from the purchase price and not included in the calculation for Stamp Duty Land Tax. As you can see, you can agree separate payments for high value items, such as carpets or curtains, but they must be fair and reasonable prices. Your solicitor can discuss this possibility with you.
Hope this helps!
Gemma