Stamp Duty Land Tax - No extension of exempt threshold
The measure
On 2 September 2008, a one-year holiday from SDLT was introduced for residential properties where the price did not exceed £175,000. The effect was to raise the threshold above which SDLT is paid from £125,000 to £175,000. Although the holiday was extended in the Budget 2009 until the end of the current calendar year, it was announced today that there will be no further extension.
Who will be affected?
Anyone buying residential property for more than £125,000 but not more than £175,000 is affected if the purchase does not complete before 31 December 2009.
When?
The old threshold of £125,000 will resume on 1 January 2010.
The impact on purchases in that range will be an additional transaction cost of up to £1,750, and this may have a dampening effect on the housing market.
