Stamp duty holiday due to end, mortgage holders warned

04 September 2009

Written by Simon Whittaker

Whether they are buying a home with a buy to let mortgage or a traditional home loan, people purchasing property worth £125,000 to £175,000 have been warned they need to act quickly.

Abbey Mortgages has advised these homebuyers to ensure they complete their property transaction before the end of the year to avoid paying stamp duty.

In this year's Budget, chancellor Alistair Darling announced that all homes bought between these two prices would be exempt from the property tax up until December 31st.

The government extended this so-called stamp duty holiday to encourage more people to buy bricks and mortar in order to stimulate the property market.

Abbey Mortgages said that up to 35,000 homebuyers are in danger of missing the deadline and having to pay the tax as a result.

Nici Audhlam-Gardiner, director of Abbey Mortgages, said that the stamp duty holiday has been a "great support" for the sector, but warned that a "sizeable tax bill" awaits those who fail to complete their deals before the end of the year.

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