Around 30,000 purchasers a year of residential property in areas designated as 'disadvantaged', where the purchase price does not exceed £150,000 are to lose the current disadvantaged areas relief from stamp duty. To see if a property is in such an area, a postcode checking service is available.
However, this abolition is welcome news to the government, as it is expected to increase their tax receipts by approximately £40million per annum.
The relief is to be repealed for transactions with an effective date on or after 6 April 2013. All claims for relief for purchases of residential property must be made on or before 5 May 2014.
Following a government review, it has been concluded that there is no evidence to suggest that the availability of this relief encourages ownership in disadvantaged areas.