As most people are aware, from April 6th 2010, Stamp Duty Land Tax for properties costing over £1m will increase from the current 4% rate to a new 5% rate. This has caused a little confusion amongst buyers as to whether the tax is due at exchange of contracts or completion.
The law is clear on this, the tax is payable only on completion of the contract so anyone looking to purchase a property over £1m will need to complete the transaction before April 6th to ensure that they do not incur the additional cost.
