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 Stamp Duty Land Tax (SDLT)
Q. What is SDLT?
A. This is a tax which is payable to the Inland
Revenue. The tax is
dealt with after the conveyancing is completed. We
deal with
this for you and all the work is included within our fees -
we will not charge
you extra for doing this.
You do not have to pay Stamp Duty if you are buying a property
for under and up to the value of £125,000.00 (unless you are a
first time buyer
or buying in a disadvantaged area (see below).
Q.
What if I am a first time buyer?
If you are a first time buyer you
will not have to pay SDLT if you are buying a
property under £250,000.00.
First time buyers are defined as persons who have
not owned property either in this country
or abroad before. The purchaser must
also be intending to occupy the property
as their only or sole residence.
If two parties are buying
together and one party has previously owned a residential
property then SDLT will be payable
(between £125,000 and £250,000.00 where its
1%).
Further
guidance can be found on HM Revenue and Customs website.
www.hmrc.gov.uk and there is also a Stamp Taxes Helpline 0845 6003 0135.
Q. What if I am buying in a disadvantaged area?
If you buy
in a disadvantaged area then you will not have to pay SDLT if the
property
you are purchasing is up to £150,000.00. To find out more go to:
http://www.hmrc.gov.uk/sdlt/reliefs-exemptions/disadvantaged-areas.htm
Q. How much SDLT will
I have to pay?
A. The Stamp Duty chargeable will be based upon the value of the property
and is charged at a percentage of that value. See below:
Price of Property being purchased |
Percentage of Tax Charged
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Under £125,000.00
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More than £125,000.00 and up to £250,000.00
(if you are not a first time buyer)
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1% of purchase price
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Over £250,000.00 and under £500,000.00
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Between £500,000.00 & £1,000,000.00 |
4% of purchase price
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Over £1,000.000.00
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5% of purchase price (from April 2011) |
Q. What if I am buying a Shared
Ownership Property?
A. If you are buying under the Shared Ownership Scheme
then Stamp Duty is
payable on the actual amount you pay rather than the total value
of the property.
Q.
I am buying a property for £200,000.00. I am not a first time buyer nor
buying
in a disadvantaged area. Do I pay Stamp Duty at 1% of the
difference between £125,000.00
and £200,000.00 eg. £750.00 or 1% of the
purchase price?
A. It is a common misconception that you have to pay 1% of the difference,
however
the actual amount you have to pay is 1% of the purchase price so you would have
to pay £2,000.00.
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