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“Time is running out for tax relief for first time buyers

First time buyers of residential property are advised to act quickly to take advantage of a tax relief which is due to come to an end on 24 March 2012.

Prior to 25 March 2010, purchasers of residential property had to pay 1% of the purchase price in stamp duty land tax (“SDLT”) for purchases where the price was more than £125,000 and up to £250,000.

Currently, first time buyers of residential property are eligible for relief from the tax for purchases of residential property  up to £250,000 where the purchaser (or all of the purchasers) are first time buyers and intend to occupy the property as their only or main home, subject to qualifying criteria. 

From 25 March 2012 the tax rate is intended to return to 1% for residential purchases where the price is more than £125,000 and up to £250,000, regardless of whether the purchaser is a first time buyer.

Therefore, those purchasers who qualify for the tax relief at present who wish to take advantage of the concession are encouraged to ensure that their purchases have completed before 25 March 2012.

If any intending first time buyers have plans to buy a residential property where the price is between £125,000 and up to £250,000, now is the time to instruct your solicitor, as the conveyancing process normally takes between 6 – 8 weeks, depending on the complexity of the transaction.

Victoria Perry is a Solicitor and Partner at Ralph & Co LLP’s Wadebridge office, specialising in residential and commercial property”

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“Great news!