Critchley Hall News
Stamp Duty Exemption Level Increases to £175,000
The Chancellor of the Exchequer has announced that from 3 September he will introduce exemption (“holiday”) from SDLT for acquisitions of residential property worth not more than £175,000. The exemption will be available where the effective date of the land transaction (normally the date of completion) is on or after the 3 September 2008 and before 3 September 2009.
This means that as from tomorrow homebuyers will not have to pay stamp duty on properties costing £175,000 or less for the next 12 months. The current £125,000 threshold will be raised from Wednesday in a move aimed at kick-starting the housing market. Someone buying a home for £175,000 will save £1,750 under the scheme, which is likely to cost the Treasury £600m. The government estimates half of all property transactions will now be exempt from stamp duty - up from one third when the threshold was £125,000.
Other housing moves announced by the government include:
- "Free" five year loans of up to 30% of a property's value for first time buyers of new homes in England
- Extension of powers for councils and housing associations to be able to pay off debt for homeowners who can no longer afford mortgage payments and then charge rent.
- Shortening from 39 weeks to 13 weeks the period before Income Support for Mortgage Interest is paid
- Bringing forward spending from future years to encourage more social housing to be built
BBC News Website, Tuesday 2nd September