Last month saw the announcement by the Chancellor of the Exchequer of a Stamp Duty Land Tax holiday from 3 September for acquisitions of residential property worth not more than £175,000.

The exemption will be available where the effective date of the land transaction is on or after 3 September 2008 and before 3 September 2009. The exemption covers acquisitions of major interests in land (other than grants of leases for less than 21 years or the assignment of leases with less than 21 years to run) which consists entirely of residential property with a chargeable consideration of not more than £175,000.

Residential property is defined as a building which is either used as a dwelling, suitable for use as a dwelling or in the process of conversion to a dwelling at the time of purchase. The definition includes land that is, or forms part of, the garden or grounds of such a building.

Full details are available at http://www.hmrc.gov.uk/so/temp-exempt-sdlt-details.htm.