Stamp duty due to come back at end of year
October 6, 2009
Last year saw the UK government suspend stamp duty on properties between the values of £125,000 and £175,000 with the aim of making property purchases more affordable in the difficult financial climate and as a result reviving the property market, which has been experiencing severe problems.
Properties under the value of £125,000 are exempt from stamp duty, but prior to the suspension there was a 1 percent stamp duty levied on properties between £125,000 and £175,000.
However, the suspension of stamp duty on properties between these values is due to come to an end at the end of this year, and those that hang around until after that time could therefore end up paying out up to an extra £1750 based on a 1 percent charge.
Some officials are therefore urging consumers to act quickly in order to ensure that they do not have to pay this stamp duty.
One industry official said that buyers should take advantage of the stamp duty tax break whilst they still can, as this could mean getting a bargain without the need to pay this tax.
He said: ‘If, as current surveys suggest, the housing market is beginning to pick up, then buyers who can secure themselves a reasonable mortgage and can afford the deposit should certainly take advantage of the tax window.’
However, another official said that consumers needed to be careful not to rush into buying a property just because the tax duty was due to restart at the end of the year, stating: ‘The savings offered by the stamp duty window, although far from negligible, are not huge relative to the final sum. By taking their time over a deal the buyer may save himself more money than the tax window would have done.’
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