The current Stamp Duty Relief for First Time Buyers comes to an end on 25th March 2012. This relief meant that First Time Buyers of residential property have not had to pay Stamp Duty Land Tax for properties purchased at a value of £250,000 or under. For all completions taking place on or after 25th March (regardless of the date of exchange of contracts) the previous Stamp Duty Land Tax provisions will apply.
From 25th March 2012 Stamp Duty Land Tax will be payable on all residential transactions where the value of the property is £125,000 or more at a rate of 1% of the market value. The other increments will remain the same.
Currently any Shared Owner (who is a First Time Buyer) who is purchasing a property does not have to pay any Stamp Duty Land Tax on their purchase where the Full Market Value of the Property is £250,000 or less. From 25th March 2012 Shared Owners will have to pay 1% of the full market value in Stamp Duty Land Tax if they opt to pay SDLT on the full value at the time of purchase. If, in light, of the change they decide only to pay SDLT on their share they will have no SDLT to pay on completion only if the value of the share is less than £125,000. Buyers in this position will have to note that SDLT may then become payable on a subsequent staircasing transaction.