Time running out for the Stamp Duty holiday.
Local solicitors, Norrie Waite & Slater, are reminding potential home buyers than the temporary suspension of Stamp Duty on residential property purchases under £175,000, will come to an end on 31st December this year.
The government announced the suspension in September of 2008, following the banking crisis, in a bid to shore up the depressed housing market.
Stamp Duty Land Tax, as it is formally known, is the tax payable on all property purchases over a certain value. Prior to the suspension, the tax was payable at 1% of the purchase price on most properties over £125,000, with progressively higher taxation rates coming into effect for purchases over £250,000.
The tax was suspended on purchases up to £175,000, representing a saving of up to £1,750 for buyers. The saving has been of particular value to first time buyers, many of whom fall into this price range.
Christine Hunt, conveyancer at Norrie Waite & Slater explains, “buyers need to be aware that the suspension is due to come to an end on the 31st December, so anyone wanting to take advantage of the saving needs to act quickly to have a chance of completing their purchase before then.”
Statistics indicate that house prices have shown some signs of stabilisation recently, following falls earlier in the year, although housing transactions are still at relatively low levels compared to before the banking crisis.
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