Duties

New rate of stamp duty land tax (SDLT)

A higher SDLT rate of 5% will be introduced for purchases of residential property where the consideration exceeds £1 million.

The new higher rate will apply to residential purchases where the effective date (normally the date of completion) is on or after 6 April 2011.

SDLT for first time buyers

Relief will be available from SDLT for purchases of residential property at up to £250,000 where the purchaser or all the purchasers are first time buyers and intend to occupy the property as their only or main home.

The new relief will be available for residential purchases where the effective date (normally the date of completion) is on or after 25 March 2010 and before 25 March 2012.

Alcohol and tobacco products duty

The duty rates for tobacco products are increased by 1%.

The impact of the changes on retail prices on and after 29 March 2010 for typical alcoholic drinks is equivalent to:

• 36p on a 70cl bottle of spirits @ 37.5% abv
• 2p on a pint of beer
• 5p on a litre of still cider
• 9p on a 75cl bottle of sparkling cider
• 10p on a 75cl bottle of wine or made-wine
• 12p on a 75cl bottle of sparkling wine.