Stamp duty change will see an increase in transactions

By Dan Crawley, of Aldreds in Great Yarmouth

It was announced at the Pre-Election Budget on Wednesday 24 March that the starting threshold for Stamp Duty Land Tax will increase to £250,000 for sales to first time buyers. The tax relief, for residential property purchases began from 25 March 2010 and will be in place until 25 March 2012. In order to fund the new two-year tax relief, it was also announced that there will be the introduction of a new 5% rate of Stamp Duty Land Tax for residential property over £1 million. The £1 million threshold will be implemented on 6 April 2011. The Government indicates the policy will help nine out of ten first time buyers*,

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saving them thousands of pounds. Experts predict this will help improve the UK property market, which was somewhat stalled when the Stamp Duty ‘holiday’ came to an end on 1 January 2010.

It is a welcome policy change for first time buyers, who now have the opportunity to get on the property ladder without having the added expense of Stamp Duty Land Tax. Even if you’re not a first time buyer, this tax relief will be a great boost to the UK property market by encouraging lots more first time buyers to the market, making 2010 possibly the year to sell your home.

*Dan is on 01493 664600 or danc@aldreds.co.uk.

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