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Stamp duty land tax – Disadvantaged Area Relief ends 6 April 2013

Disadvantaged Area Relief   (DAR) which reduces the amount of Stamp Duty Land Tax (SDLT) payable in areas designated by the government as ‘disadvantaged’ is is being abolished for transactions completed on or after 6 April 2013.

All claims to relief for purchases of residential property where the effective date is before 6 April 2013 must be made on or before 5 May 2014. HMRC say claims made after that date will not be accepted.

DAR is available on transactions involving residential property in designated disadvantaged areas, where the effective date of the transaction is on or after 1 December 2003 and before 6 April 2013 and the chargeable consideration does not exceed £150,000.

This HMRC information explains which areas and properties DAR applies to, the current rates, and how to work out how much stamp duty land tax (SDLT) is payable if a property qualifies.

HMRC remind claimants that to make a claim for DAR an SDLT return needs to be completed even though there is no SDLT payable.

If you have any questions please email property@olaleslie.com or call 02071830084

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