BUDGET 2010: Stamp duty threshold doubled - rate hiked for £1m homes
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The Chancellor Alistair Darling is to double the stamp duty threshold from £125,000 to £250,000 for this year and next for first-time buyers but the rate for properties worth more than £1m is to increase to 5 per cent.
Delivering the Budget speech today, Darling said the move would mean nine out of 10 first-time buyers would pay no stamp duty.
The move comes after a stamp duty holiday – which increased the threshold from £125,000 to £175,000 – came to an end in January.
Kinleigh Folkard & Hayward director Paul Master says: “The government’s announcement to scrap the stamp duty land tax below £250,000 is a welcome help for first time buyers. With 31 per cent currently registered with KFH being first time buyers this means that there is a significant number who can save up to £2,500 in stamp duty charges.
“With over a quarter of our stock currently at or under £250,000 this extra help could be the catalyst needed to kick start the property market again.”
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Readers' comments (27)
Anonymous | 24 Mar 2010 1:15 pm
The losers are savers and pensioners with an exposure to commercial property. The vast majority of Stamp is raised on commercial property.
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John Harding | 24 Mar 2010 1:23 pm
Very nice, but this and any other election bribes will all be done with borrowed money.
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Anonymous | 24 Mar 2010 1:24 pm
So the threahold has been raised to £250k but what will the rate above £250k be - 1% or 3% -that is a key issue for all other buyers!
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steve | 24 Mar 2010 1:28 pm
Does this have an immediate effect then? Seems to read that way. I have several clients with tranactions going through now who should benefit.
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Anonymous | 24 Mar 2010 1:39 pm
Is this measure meant to incentivise 1st time buyers or is it exclusive to 1st time buyers.
If it's the latter, how is a 1st time buyer defined?
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Rachel | 24 Mar 2010 1:39 pm
I'm a bit confused, is this for first time buyers only or for all purchases up to £250,000? My partner and I are buying a 250 grand house and he is a ftb but I am not.
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Mick Jones | 24 Mar 2010 1:46 pm
I understand it's for first time buyer only.
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John Noble | 24 Mar 2010 1:46 pm
Understood for 1st time buyers, but if buying your second home for £245k, will you still have to pay SD?
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Rachel | 24 Mar 2010 1:48 pm
So what happens if a couple buy and only one of them is a first time buyer?
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Anonymous | 24 Mar 2010 2:01 pm
When is this in effect? as I am currently going through my flat sale now and am a ftb?
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