The current exemption from Stamp Duty for residential property up to £175,000 ends on 31st December 2009.

This means to benefit from this exemption you must complete your purchase by this date (exchange is not normally sufficient to benefit from this exemption – however see below). If this affects your purchase please bear this in mind when calculating your fees and disbursements. After this date the exemption will drop to £125,000 and properties between £125,001 to £175,000 will be charged at the usual 1% rate.

It may be possible in certain circumstances to “substantially perform” a contract to trigger the “effective date” prior to actual completion. This can be acheived by paying a substancial amount of the purchase price over on exchange or by providing that the purchaser is entitled to occupy (whether or not the purchaser actually takes possession) – this may be useful if you are purchasing a vacant probate or refurbishment property and obtain the keys from exchange.

 For assistance on residential property transactions call Mark Sadler @ kenneth elliott + rowe on 01708 757575 or email: mbs@ker.co.uk