Home buyers are in danger of missing the stamp duty holiday deadline which expires at the end of the year

As part of the Government’s economic stimulus package, properties valued between £125,000 and £175,000 have been exempt from stamp duty since September 2008. This will come to a close at the end of the year, meaning home buyers will once again face a 1% tax on all properties valued between £125,000 and £175,000.

Buyers at this property price range would normally face a stamp duty tax bill of anywhere between £1,250 and £1,750.

On average, house purchases take at least three months to complete, so to ensure that you don’t pay stamp duty this means the effective deadline for mortgage applications will be 30^th September.

The stamp duty holiday has been a great support in stimulating the housing market, and has significantly reduced costs of house purchases for houses up to £175,000 in value. However, with the holiday coming to an end, anyone looking to buy a property worth more than £125,000 faces a sizeable tax bill if they fail to complete before 31 December 2009.

With a saving of up to £1,750 at stake for those people who have been considering buying a property, this impending deadline is an added incentive to move fast. First time buyers have been hit hard by the costs of climbing on to the ladder and for these people this is a golden opportunity to make a big saving.

This entry was posted on Sunday, September 6th, 2009 at 10:20 pm and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.