Government announces suspension of stamp duty

Stamp duty will be suspended for a year on houses costing less than £175,000, as announced by the Treasury on the 2nd September 2008. The Treasury said the relief on homes worth less than £175,000 would apply to transactions on or after 3rd September 2008 and before 3rd September 2009.

The payment holiday is an attempt to show voters that the government is on the side of homebuyers at a time when property values have slumped and sales stagnated. The move by Chancellor Alistair Darling, raises the threshold at which 1% stamp duty is paid from £125,000, and will save eligible homebuyers up to £1,750. The scheme applies only to buildings entirely for residential use.

The Treasury estimates that the one-year stamp duty freeze will cost the government £600m - suggesting that it expects about half a million home-buyers to benefit from the change.

The average price of a home in the UK was just under £165,000 in August, according to the Nationwide monthly house price index.

Prior to 3rd September, people buying homes worth between £125,000 and £250,000 paid 1% in stamp duty. This now changes: homes worth between £175,000 and £250,00.00 pay 1% in stamp duty. The rate remains at 3% on properties worth more than £250,000, and 4% if the house is worth more than £500,000

	News & Articles	Stamp duty will be suspended for a year on houses costing less than £175,000, as announced by the Treasury on the 2nd September 2008. The Treasury said the relief on homes worth less than £175,000 would apply to transactions on or after 3rd September 2008 and before 3rd September 2009. The payment holiday is an attempt to show voters that the government is on the side of homebuyers at a time when property values have slumped and sales stagnated. The move by Chancellor Alistair Darling, raises the threshold at which 1% stamp duty is paid from £125,000, and will save eligible homebuyers up to £1,750. The scheme applies only to buildings entirely for residential use. The Treasury estimates that the one-year stamp duty freeze will cost the government £600m - suggesting that it expects about half a million home-buyers to benefit from the change. The average price of a home in the UK was just under £165,000 in August, according to the Nationwide monthly house price index. Prior to 3rd September, people buying homes worth between £125,000 and £250,000 paid 1% in stamp duty. This now changes: homes worth between £175,000 and £250,00.00 pay 1% in stamp duty. The rate remains at 3% on properties worth more than £250,000, and 4% if the house is worth more than £500,000 Back to top

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