The Chancellor announced a new tax relief for bulk purchases of residential properties. From this summer, Stamp Duty Land Tax (SDLT) will be determined on the mean value of the total number of dwelling houses purchased, rather than the cumulative value as is currently the case. This represents a significant cost saving for those interested in investing in the residential property market. The relief is subject to a minimum rate of 1%.
New rate for residential property.
Last year it was announced that a new SDLT rate of 5% would be introduced on residential property transactions where the consideration exceeds £1m. This new rate comes into effect on 6 April 2011. We shall have to wait and see what effect this has on the residential property market in the coming months.
First Time Buyers
SDLT relief for first time buyers came into effect on 25 March 2010. The relief is available where the consideration is £250,000 or less. The property must form the purchaser’s main residence and the purchaser must not have previously owned property or land in the UK or anywhere else in the world. This includes property bought with someone else. The relief only applies until 24 March 2012, although the Government will announce the outcome of its review of this relief in the autumn.