HOMES worth £175,000 or less are to be exempted from stamp duty for 12 months as part of a package to revive the housing market, the Chancellor announced today.
The change, which comes into effect tomorrow, raises the threshold on which 1% stamp duty is paid from its current level of £125,000.
The move will save eligible home-buyers up to £1,750 when they purchase a property, and relates only to buildings entirely for residential use.
In a statement, the Treasury said: "The Chancellor of the Exchequer has today announced that stamp duty land tax will not apply to purchases of residential property of £175,000 or less.
"This will provide an exemption from stamp duty land tax for land transactions consisting entirely of residential property where the chargeable consideration is not more than £175,000.
"This relief will apply to transactions with an effective date on or after 3rd September and before 3rd September 2009."
The UK's biggest mortgage lender today welcomed the Government's announcement that it was abolishing stamp duty on properties worth up to £175,000.
The move means anyone buying an averaged priced house is likely to avoid having to pay the tax, relieving some of the pressure on hard-pressed first-time buyers.
A Halifax spokeswoman said: "We welcome the Government's stamp duty initiative. This is a sensible measure and it will help the housing market."
