The UK government has announced that the existing stamp duty land tax relief for first time buyers, will not be continued after 24th March 2012.
This news is seen as a fairly big blow to the UK property market and could have a negative impact with many first time property buyers having to find the extra 1% on their transaction price for the stamp duty land tax. The chancellor George Osborne, has also indicated that there will be two new stamp duty pricing brackets aimed at more expensive houses and people who buy their property using a company to avoid paying the stamp duty land tax.
The new 7% and 15% stamp duty
As of the 22nd March 2012, any property being purchased that is valued over £2 million, will be subject to a 7% stamp duty land tax. Any property that is valued over £2 million and is being purchased by a company, will be subject to 15% stamp duty land tax. The chancellor has introduced these brackets that will take effect on the 22nd March 2012. He has introduced these brackets as he feels people that buy more expensive homes, should contribute more. He has also introduced the 15% bracket to combat any stamp duty land tax avoidance, when people purchase these higher priced homes.
The current stamp duty land tax rates
The table below shows the current stamp duty land tax percentages in place for property transactions occurring up until midnight on the 24th March 2012.
| Purchase Price / Lease Premium or Transfer Value | Property Owner Stamp Duty % | First Time Buyer Stamp Duty % |
|---|---|---|
| £0 - £125,000 | 0 | 0 |
| £125,001 - £250,000 | 1 | 0 |
| £250,001 - £500,000 | 3 | 3 |
| £500,001 - £1,000,000 | 4 | 4 |
| £1,000,001 plus | 5 | 5 |
The new stamp duty land tax rates for 2012
On the 22nd March 2012 and after midnight on the 24th March 2012, the following stamp duty land tax rates will come into effect.
| Purchase Price / Lease Premium or Transfer Value | Property Owner Stamp Duty % | First Time Buyer Stamp Duty % |
|---|---|---|
| £0 - £125,000 | 0 | 0 |
| £125,001 - £250,000 | 1 | 1 (effective 25th March 2012) |
| £250,001 - £500,000 | 3 | 3 |
| £500,001 - £1,000,000 | 4 | 4 |
| £1,000,001 - £2,000,000 | 5 | 5 |
| £2,000,000 plus (effective 22nd March 2012) | 7 | 7 |
| £2,000,000 plus and purchasing using a company (effective 22nd March 2012) | 15 | 15 |
Conveyancing Quotes and Online Systems
You can also workout and calculate your stamp duty liability using our handy stamp duty calculator.
With the introduction of the new stamp duty land tax rates and change of percentages, we have been busy at The Conveyancing Network ensuring that our systems provide fast, accurate and detailed conveyancing quotations online securely and conveniently to all of our websites and business partners. The Conveyancing Network is an online network and provider of technology solutions for solicitors, licensed conveyancers, IFA's, mortgage brokers, estate agents and more.
Using our latest conveyancing comparison plugin technology we can instantly compare solicitors and licensed conveyancers on various partner websites, to provide instant conveyancing quotations and instruction. The comparison plugin is also available to solicitors and licensed conveyancers to use on their own websites to produce online quotes 24 hours a day, 7 days a week. The plugin is currently free to install and can be implemented within 24 - 48 hours.
If you are a solicitor or licensed conveyancer and are interested in joing our legal conveyancing panel, please feel free to contact us on 0203 637 2219 or join the network online.
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