Stamp Duty Reminder for First Time Buyers

The end of the stamp duty holiday is nigh. The Government’s current incentive means that first time buyers are not required to pay stamp duty on properties under £250,000. However, those looking to start climbing the property ladder should be reminded that this is soon to change. As of the 25th of March, first time buyers looking to buy a property will have to pay 1% of the purchase price in stamp duty tax.

The decision to end the holiday provoked fury last year, with critics saying that the Government did not commit to their claim of kick starting the housing market. Ending the relief sparked controversy as those in favour argued that the holiday was a significant help to home owners entering the market. However, the Government argued that it has been “ineffective” and have pledged to publish a report to prove this.

If you are a first time buyer currently buying a property, unless you complete prior to 25th March 2012 you will also be liable to pay 1% stamp duty. So those thinking of purchasing property this year may consider bringing their plans forward, or ensuring their solicitors are aware they require completion prior to 25th March.

The race to take advantage of the stamp duty relief is on, people aiming to beat the tax deadline date on the 24th of March must get moving quickly.