The new rates will apply to property transfers on or after 8 December 2010. A transitional provision will be put in place to ensure anyone who has entered into a binding contract to purchase a residential property before 8 December and who executes the transfer of that property before 1 July next will not be disadvantaged. It should be noted that as a result of the changes, stamp duty will now be payable in all residential property transactions, and this information will be used to compile a database of house valuations which will underpin the development of the new site value tax announced in the national recovery plan. The finance Bill will contain details of this database, which will be established in advance of the site valuation tax.

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