The Legislation in Finance Bill 2010 will soon introduce a higher stamp duty land tax rate of 5% for any purchase of a residential property where the consideration exceeds £1 million. The old rate was capped at 4% on purchases over £500,000.00 but the new higher rate, set to affect property purchases completing on or after 6th April 2011, could mean an additional £10,000.00 in stamp duty land tax.
The current rates are set out below:
SDLT residential freehold and leasehold property
Purchase price/lease premium or transfer value SDLT rate
Up to £125,000 Zero
Over £125,000 to £250,000 1%
Over £250,000 to £500,000 3%
Over £500,000 4%
If you have any queries at all about this change you can contact the Stamp Taxes Helpline or go to HMRC’s website: www.hmrc.gov.uk
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