Budget 2010 – New Stamp Duty Land Tax rate
The Chancellor has announced a new higher rate of 5% stamp duty land tax. This will be applied to residential property sales where consideration exceeds £1 million from 6 April 2011.
This new rate will replace the current 4% rate which applies to transactions of over £500,000. The 4% rate will continue to apply for transactions between £500,000 and £1 million.
The April 2011 implementation of this measure may well result in there being an increase of sales of expensive properties over the next 12 months as buyers seek to reduce their stamp duty exposure.