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BUDGET 2010: Stamp duty threshold doubled – rate hiked for £1m homes

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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Comments

There are 27 comments at the moment, we would love to hear your opinion too.

  1. The losers are savers and pensioners with an exposure to commercial property. The vast majority of Stamp is raised on commercial property.

  2. Very nice, but this and any other election bribes will all be done with borrowed money.

  3. 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!

  4. Does this have an immediate effect then? Seems to read that way. I have several clients with tranactions going through now who should benefit.

  5. 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?

  6. 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.

  7. I understand it’s for first time buyer only.

  8. Understood for 1st time buyers, but if buying your second home for £245k, will you still have to pay SD?

  9. So what happens if a couple buy and only one of them is a first time buyer?

  10. When is this in effect? as I am currently going through my flat sale now and am a ftb?

  11. I am a first time buyer and have paid solisitor fees including stamp duty cost for my 133k house friday 12th marchwith the date to exchange contracts this firday 26th march. does this mean i do not now pay the stamp duty or am just guna be unlucky and have to pay it? shorely if contracts have not been exchanged yet then the monie is still in the solisotors bank awating transaction friday. Can any one help please.

  12. So is the rate for 250k + still unchanged at 3%?!

  13. From midnight tonight

  14. I believe that if you are a non FTB buying for under £250k you will still have to pay SDLT which i assume – but cant find any guidance as yet – will be at 1%. The duty for properties between £250k and £500k will i understand remain at 3% (rising to 4% for 500k to 1m and 5% thereafter). If the changes take effect as they have done in the past if you are in the process of purchasing at the moment and have already exchanged contracts you will still be liable to pay duty on the old basis. Only if you exchange contracts after midnight tonight will you have the benefit of the changes.

    If anyone has any guidance on the rate of duty to be charged for non FTB under £250k or what the definition of a FTB is and how it will be policed let me know!!

  15. Questions, questions, questions. I would lay money on it that when the parameters are finally known it will be a bit like all of the 1,000’s of small businesses that have been helped out but it transpires that they haven’t. Same as with the 1,000’s of home owners who have been helped out by our leader and his merry men, but they haven’t!. All a load of b……ks. Smoke and mirrors!.

    For god sake why don’t they just go now!

  16. I’m a first time buyer and am completing my purchase which is under 250,000 this friday 26th. As the threshold will be raised from midnight tonight, does this mean i will not have to pay stamp duty?

  17. We are in the same situation, we exchanged contracts on Monday but not due to complete until next Thursday. My solicitors cannot tell me whether we are eligible to avoid this or not as they are not sure where the cut off point will be at exchange or completion. Fingers crossed!

  18. Well I have read some rubbish from advisors in the comments box over the years. However, anon who asked,’ what the stamp duty is over 250k’, please give up your day job and save the rest of the displeasure any future moronic comments you may make!

  19. 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?

  20. I understand a first time buyer in this scenario is defined as somebody who has never previously had their name added to the land registry. If you have owned previously (irrespective of your current situation), you will not be entitled to the exemption.

  21. To Chris Deavall

    Assuming this change takes place immediately, if you have not exchanged then you would expect not to have to pay stamp duty and would expect the solicitors to then refund you this money. I would imagine if you had exchanged then it would be too late. But i’m not a licenced conveyancer! (i just used to work for sale and purchase solicitors)

  22. I believe the stamp duty liability is calculated on the date of completion, rather than the date of exchange.

  23. Legislation in Finance Bill 2010 will introduce relief from stamp duty land tax (SDLT) for purchases of residential property at up to £250,000 where the purchaser or all the purchasers are first time buyers and intend to
    occupy the property as their only or main home. The new relief will be available for residential purchases where the effective date (normally the date of completion) is on or after
    25 March 2010 and before 25 March 2012.

  24. Another labour gimmick without a thought to the effect on the housing market. In many areas £250000 would be the target for 2nd time buyers; What about people starting again after a partnership/marriage split? or having another attempt after a previous repossession? the new inpoverished elderly trying to downsize? The currently depressed buy to let market?
    Help in all these sectors would be justified, well placed, and result in fresh flow of market activity.

    As for the rest of us- having struggled to get up the property ladder those wanting to move up again to the now fairly common £1m property are having to find an extra minimum £10000 and those wanting to down size are having to take a hit on their sale price to make it possible. This “giveaway” is nothing compared to the theft from those who are already being screwed by this government at every turn.

  25. Bought our first house 3 months ago… how SICK do I feel that we could have waited 3 months and saved 1% off what will work out to be our mortgage?

    Will the government back-date it and refund for us 1st time buyers that have scrimped and saved to just manage it? It’s a farce….

    Whilst I’m on this subject… what 1st time buyers can truely afford a £250k house when much of the problems lie in the banks messing up – STILL paying out big bonusses to incompetent staff that have destroyed people’s chances of getting mortgages in the first place!?

  26. I am fuming about the stamp duty.. we are sooo unlucky… first time buyers were exempt up to £175K before 2010 and now after March 25 2010.. guess when we bought our first house!! Feb 25 2010!!.. what gets me is the budget is planned months in advance.. did you enjoy that £1400 bottle of plonk Gordon!!!

  27. Agree with Natalie, As a first time buyer i really struggled to raise my deposit & solicitors fees and completed at the end of february. Is the country being run on a month by month basis? All stamp duty should be refunded in my opinion. Anybody know of any legal firms willing to attempt to take this up?

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