Many of you many know that Stamp Duty Land Tax (SDLT) is a tax payable when you buy property or land over a certain price. Stamp Duty was introduced in 1694 as a way to raise monies for war against France. SDLT has of course, changed quite substantially since then and in 1997 bands were introduced which dictate the amount of SDLT that is payable and when. The current SLDT amounts came about in 2014 and are as follows: –
Of course, like many things in the law, there are certain exceptions to the rule. For example:
If you are buying a second home, a holiday home or an investment property for example, you will be required to pay an additional 3% SDLT on top of the sum mentioned above.
First time buyer
If you are a first time buyer, you will pay no SDLT on any property that you are purchasing for less than £300,000.
Gifting a property
Be careful, you might think that because no money is changing hands, no SDLT will be payable. However, SLDT is payable on the “consideration” which is not always limited to money. For example, if you are taking over a mortgage on a property, this is likely to be considered as “consideration” and so, SDLT will be payable.
The rules are different at the moment!
Stamp duty holiday
For any property purchases that are taking place for less than £500,000 no SDLT will be chargeable at the moment. This means a saving of up to £15,000 on the purchase of a property as a main home. This Stamp Duty holiday ends rather abruptly on the 31st of March 2021. Conveyancing transactions can take 2 -3 months to complete so please do not waste any time if you want to make the most of this Stamp Duty holiday.
Please request a quote for our legal fees here which will include the amount of SDLT you will need to pay from us today.