Law firm MAB warns about rise in Stamp Duty Land Tax (From Watford Observer)

Law firm MAB warns about rise in Stamp Duty Land Tax

11:00am Thursday 6th January 2011 in Business News

Law firm Matthew Arnold & Baldwin LLP is warning home buyers of properties valued at more than £1m to beware a forthcoming rise in Stamp Duty Land Tax (SDLT). The rise, from four to five per cent is due to take effect on April 6 and could increase the SDLT tax liability of a £1m property by at least £10,000.

The SDLT increase was originally announced by the Labour Government in the March 2010 budget, with the newly-elected Coalition Government confirming that the five per cent SDLT rate will still be brought in.

With only a matter of months left before the changes take effect, Matthew Arnold & Baldwin is warning buyers to act quickly to save money as it can take several months to sell and purchase a property. The rise is predicted to hit the South-East in particular as there are a higher proportion of million pound properties in the area.

Until relatively recently million pound properties were rare and mostly owned by the very wealthy, but now the number of million pound properties being sold is soaring. The Halifax Million Pound Property Report shows that sales of these types of properties have doubled over the period of October 2009 to October 2010. In just the first six months of 2010 2,992 million pound properties were sold in Britain.

Richard John, Partner in the Residential Team at MAB said: “If you are thinking of buying or selling a property worth £1m or more, it would be advisable to act quickly to avoid the impending SDLT rise. Our residential property team are able to advise on all aspects of your property sale and purchase. Working alongside our wealth management team we are able to provide you with the best structure for buying and selling your real estate assets.”