Property owners and prospective purchasers are reminded that from next month (April), anyone purchasing a residential property costing £1,000,000 or more will face a one per cent increase in Stamp Duty Land Tax, adding an additional cost of at least £10,000 following Alistair Darling’s stamp duty hike on the most expensive properties.
The highest rate of Stamp Duty Land Tax is currently four per cent, which is payable on properties valued at £500,000 and above. From April 6, 2011, the rate for residential properties valued at £1 million or more will rise to five per cent.
“The new high rate tax in on residential property only – non residential remains at four per cent – so this means that an apportionment of the price will need to be made where a property is not wholly residential,” explained Sarah Reece, associate partner with Berrys at Shrewsbury.
Contact Sarah Reece at the Shrewsbury office on 01743 271697 or email sarah.reece@berrybros.com
