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STAMP DUTY LAND TAX LEVEL INCREASE

In his 2005 Budget, Chancellor Gordon Brown raised the level of purchase price payable to trigger payment of Stamp Duty Land Tax (SDLT) from £60,000 to £120,000. What remains to be seen is whether this will make it any easier for first time buyers to get onto the housing ladder.

Many commentators see this as something of a token gesture with the average house price in England and Wales being some way above this and even the average first time buyer house price being above this level.

Certainly in London, the South East and many regional hotspots including South Manchester and Cheshire this increase will have little, if any effect. House price increases have far outstripped the SDLT level rise.

"The increase in level will not make it any easier for first time buyers to save a deposit or borrow any more money to enable them to get a foot on the property ladder" explains Ben Crouch Head of Residential Property at George Davies.   What is also noticeable is that for the higher rates of SDLT there is no commensurate rise in trigger price so that properties at £250,001 to £500,000 will still attract SDLT at the rate of 3% of the total price and for properties over £500,001 SLDT will be charged at 4% of the total price.

If you would like any more information about selling or buying a residential property please contact Ben Crouch on 0161 234 8804 or by email at bencrouch@georgedavies.co.uk

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