Stamp duty land tax is usually payable to HM Revenue and Customs when you buy or lease land or property. It may also be payable on transfers of property or land. It is paid at the end of the conveyancing transaction.
Stamp Duty rates
When purchasing a property it is important to ensure that you check to see how much stamp duty land tax is payable on completion. The rates are as follows:
Up to £125, 000 = 0%
£125, 000 – 250, 000 = 1%
250, 000 – 500, 000 = 3%
500, 000 upwards = 4%
First time Buyers
For first time buyers, SDLT is not payable on the purchase of a property below £250, 000. A buyer can never have owned a property in order to be considered a first time buyer for the purposes of this concession.
Properties in Disadvantaged areas
Properties in disadvantaged areas where the property price is £150, 000 or below are exempt from paying tax. Click here to see if a property is in a disadvantaged area.
Stamp Duty form
The SDLT form that needs to be completed when a property is purchased is lengthy and consists of several pages. All purchasers will need to sign the form. Forms can be sent by post or completed on line and payment of SDLT can also be made in these two ways.
Fridaysmove complete SDLT forms on their clients’ behalf to ensure the form is completed properly. If information is missed out or completely inaccurately it can lead to delays in processing the SDLT payment since HM Revenue & Customs will need to raise enquiries. If payment of SDLT is not received (this includes a valid and properly completed SDLT form) within 30 days of the day of completion, penalties and interest will have to be paid.
If you are looking to buy a property why not get a quick conveyancing quote.