There are many additional costs to consider when purchasing a property such as survey fees and removal costs, but one of the biggest costs is Stamp Duty Land Tax which is payable on Conveyancing transactions.

If you are purchasing a residential property at a price of £125,000 or below no Stamp Duty Land Tax is payable. If you are a first- time buyer buying for over £125,000 up to and including £250,000, then no Stamp Duty Land Tax is payable provided you can comply with the conditions of the First-Time Buyer Relief and the transaction completes before the 25th March 2012. The Relief does not, however, apply if you or your joint purchaser have owned a property at any time anywhere in the world.

There are several thresholds for Stamp Duty Land Tax with different amounts of tax payable on residential conveyancing transactions at each level. Stamp Duty Land Tax is payable at 1% for transactions over £125,000 up to and including £250,000. Purchases from £250,001 up to and including £500,000 are subject to tax at 3% and over £500,000 up to and including £1 Million, the tax is 4%. If you are buying a property for over £1Million, since April this year, Stamp Duty Land Tax will be charged at 5% of the purchase price.

You may not have to pay Stamp Duty Land Tax if you are purchasing in an area which the Government considers to be ‘Disadvantaged’. For help on this please do not hesitate to telephone or email our Conveyancing Manager, Alison Stock. Tel 01245- 258892 alison.stock@qshalaw.com