Higher SDLT rates could cost buyers an additional £10,000.00

Higher SDLT rates could cost buyers an additional £10,000.00

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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