Money Matters - Winter 2008

Stamp duty land tax

If you are buying a residential property between 3 September 2008 and 2 September 2009 inclusive, you can benefit from a temporary increase in the stamp duty exemption threshold to £175,000. The relevant date is normally the completion date and there will be no leeway for transactions just before or just after this period.

Everyone is entitled to the exemption, but the property must be solely residential. Mixed use property, such as a shop with a flat above, does not qualify. However, property being converted to residential use will qualify.

The exemption also applies to leases of more than 21 years where the net present value of the rent is £175,000 or less. The net present value is the rent payable over the whole term of the lease discounted by 3.5% a year.