PROPERTY AND TAX

Published: 3rd February 2010 at 16:02:39

PROPERTY AND TAX.

Stamp Duty Land Tax is payable on purchases of property of more than £125,000.  The rate of tax is 2% for properties from £125,001 - £250,000, 5% for properties from £250,001 to £925,000 and 10% for properties from £925,001to £1,500,000.

An additional nil rate band will be available for transfers on death on or after 6th April 2017 when a residence is passed to a direct descendant (a child of the deceased and their lineal descendants).  This will be £100,000 in 2017-18.  The additional nil rate band will also be available when a person downsizes or ceases to own a home on or after the 8th July 2015 and assets of an equivalent value, up to the value of the additional nil rate band, have passed on death to direct descendants.

The existing nil rate band will remain at £325,000 until the end of 2020-21.

Unmarried couples are strongly advised to make Wills because currently on the death of one party their estate would not automatically pass to the surviving partner.

Couples buying property putting in unequal financial contribution need to think carefully about and obtain advice concerning what type of joint ownership best fits their needs.

N.B. The additional nil rate band will take effect for transfers on death on or after the 6th April 2017.