HMRC to end 'Disadvantaged Areas Relief'
11 March 2013
HMRC have announced the repeal of ‘Disadvantaged Areas Relief’ for Stamp Duty Land Tax (SDLT). Currently people buying properties between £125,000 and £150,000 (which would normally incur Stamp Duty of 1%) in areas designated as ‘disadvantaged’ do not pay stamp duty. HMRC feel there is no evidence that this stimulates the housing market in these areas and have decided to stop offering the relief.
As well as buyers, some of those most affected may be those trying to sell properties priced around the stamp duty threshold level; they may well find that their property value will now be affected by the artificial ‘ceiling’ created by stamp duty thresholds just as properties are in other parts of the country.
The repeal of the relief will affect all transactions with an entry date on or after 6 April 2013.
If you are considering buying a property and have any questions about the procedures and costs involved, including SDLT, please contact Inksters' Brian Inkster or Louise King on 0141 229 0880, who will be happy to advise you.
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