Contact the Residential Property Team:
St Austell : Email
Truro : Email
General information
It was announced in the Budget on the 24 March 2010 that there will be a relief from Stamp Duty Land Tax for all purchases of residential property up to £250,000, where the purchaser is a first time buyer and intends to occupy the property as their only or main home.
The implications
It is predicted that this relief will mean that nine out of 10 first time buyers will not be liable for the tax. This is great news for first time buyers who often struggle to raise finance to get on the property ladder.
Prior to the implementation of this new relief the Stamp Duty Land Tax rate was 1% for residential purchases where the price paid was more than £125,000 and up to £250,000. The new relief doubles the previous limit to £250,000 and therefore this tax is now not payable on properties priced between £125,000-250,000.
Take, for example, a property valued at £250,000, the Stamp Duty Land Tax would previously have been £2,500. First time buyers can now save this money to put towards a deposit in order to obtain a mortgage.
How long is the relief available?
The relief is only available for two years. To take advantage of it the 'effective date', which is normally the date of completion, must be on or after the 25 March 2010 and before 25 March 2012.
Are you eligible for the relief?
You may be eligible for the relief if you satisfy all of the following criteria:-
The property must be solely residential.
- The purchase must be of freehold or leasehold land. In the case of a grant or assignment of a lease, the lease must have 21 years to run.
- The purchase must not be linked to any other transactions.
- You must not be purchasing for more than £250,000.
- You must intend to occupy the property as your main residence.
- You must not have previously acquired an interest in land, anywhere in the world. This does not include a grant or assignment of a lease with less than 21 years to run.
You won't be eligible for the relief if:-
You are buying a house with your partner and one of you has previously owned a residential property.
- You have previously bought a house jointly with your spouse/partner and the partnership has broken up and you want to buy again.
- You are transferring an interest in your home to your partner.
- You have previously inherited a property.
- You are buying on behalf of your parents.
For further information on how to claim this relief please contact our Property Teams for advice on either
St Austell 01726 74433 or
Truro 01872 265100
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