Since the 'leak' from the Government a few weeks ago in August that the Chancellor was 'considering' proposals for boosting the housing market, today (Tuesday 2nd September 2008) we see a press release from the Treasury.
It is understood that the Chancellor was considering measures for the deferment of payment of this tax or temporary suspension of such charge.
This announcement tells us that the lower level has been increased from £125,000 up to £175,000 for a 12 month period.
Whilst this will encourage some buyers back into the market place, the higher limits of £250,000 and £500,000 at which Stamp Duty is charged at 3% and 4% respectively should perhaps also have been reviewed and increased accordingly to encourage buyers at these levels to further their house purchase goals.
The new level will assist those buyers (especially First Time Buyers) wanting to purchase properties below this new level, but unless the sellers of those properties have some incentive to make their onward move, potentially into these higher bands, it is unlikely to have much of an impact.
The wording from the Treasury's website is detailed below.
88/08
2 September 2008
Stamp Duty
The Chancellor of the Exchequer has today announced that stamp duty land tax will not apply to purchases of residential property of £175,000 or less.
This will provide an exemption from stamp duty land tax for land transactions consisting entirely of residential property where the chargeable consideration is not more than £175,000.
This relief will apply to transactions with an effective date on or after 3rd September and before 3rd September 2009.