A leading Ayrshire firm of solicitors has welcomed the two-year exemption from SDLT (Stamp Duty Land Tax) for first-time house buyers of properties up to £250.000 which was announced in Alistair Darling’s Budget last Wednesday.
Frazer Coogans Solicitors senior partner Norman Geddes said: “The concession on SDLT for the next two years raising the limit to £250,000 for first time home buyers is most welcome.
“It will provide a welcome boost to the housing market, not only by stimulating the first time buyer market but also by stimulating the market above that, as current homeowners find it easier to sell their houses and move upmarket.”
Legislation in the Finance Bill 2010 will introduce relief from SDLT for purchases of residential property at up to £250,000 where the purchaser or all the purchasers are first time buyers and intend to occupy the property as their only or main home. This relief will only be available for the next two years.
At present the SDLT rate is 1 per cent for residential purchases where the price is more than £125,000 and up to £250,000. The Finance Bill 2010 will provide relief for residential purchases in this price band if the purchaser or all the purchasers have not previously acquired such property.
It does not apply where the purchaser is a company.
A first time buyer is defined as someone who has not previously held a proprietary interest in such a property anywhere in the world,
If more than one person is buying, then all must be first time buyers for the exemption to apply.
Norman Geddes concluded: “The housing market has been stifled for the past two years by banks placing limits on mortgages for first time buyers which required them to have a substantial deposit, plus find up to £2,500 for Stamp Duty.
“The mortgage market is now beginning to ease slightly, and the Stamp Duty exemption will save first time buyers up to £2,500 depending on the price of the property.”
Frazer Coogans Solicitors
46 Dalblair Road
Ayr KA7 1UQ