The stamp duty holiday that was brought in by the UK government last year is set to come to an end at the end of this year, and as a result many potential property purchasers may need to move quickly in order to avoid having to pay a hefty amount of tax on the home that they purchase.

The stamp duty holiday was launched this time last year in a bid to try and increase affordability for struggling property purchasers and increase activity in the failing property market.

Whilst no stamp duty needs to be paid on properties under the value of £125,000 the new measure from the government meant that for a limited period of time properties valued at between £125,000 and £175,000 would also be exempt from stamp duty.

The stamp duty holiday on properties between these values is set to come to an end on New Year’s Eve, however, which means that many homebuyers will have to move quickly to save themselves money.

From the start of 2010 the stamp duty level of properties between £125,000 and £175,000 will return to its previous level of 1 percent of the property value, and most industry officials have said that they doubt that they government will extend the measure again. This could cost buyers up to £1750 in stamp duty if they miss the exemption window.

One industry official said: ‘If, as current surveys suggest, the housing market is beginning to pick up, then buyers who can secure themselves a reasonable mortgage and can afford the deposit should certainly take advantage of the tax window.’

However, another official said that consumers should avoid rushing into a purchase just to meet the stamp duty deadline, stating: ‘The savings offered by the stamp duty window, although far from negligible, are not huge relative to the final sum. By taking their time over a deal the buyer may save himself more money than the tax window would have done.’

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