These words sometimes fly past our heads without us noticing them, as do many words to do with the housing sector. However, you may have heard the term ‘stamp duty’ more times than most. And that’s because of the new changes due in April.
However, before we get into the nitty gritty of the law, let’s look at some at some of the facts. First of all, stamp duty is fully known as stamp duty land tax aka SDLT. You pay SDLT if you are a landlord with buy-to-let properties, or own a second home and have bought that property over the price of 125,000 (for residential properties) or 150,000 (non-residential property or land).
There are different rates of SDLT depending on how valuable your property is, the higher the value the more the SDLT. For example, if your house is worth over 1.5 million, you pay a 12% tax return.
In April this is set to rise by 3% and because of this there has been a huge rush to in the mortgage buy-to let market. Investors are being pushed to buy their homes before the stamp duty changes come into place. However, this is soon forecasted to slow down.
Stamp duty is paid on:
The stamp duty that you are due to pay are can be worked out using HMRC SDLT calculator. To pay your stamp duty you have to submit a stamp duty land tax return for what you owe within 30 days. Your solicitor can do this for you or you can do it yourself. You could be fined £100 if you do not pay it on time plus interest.
There are certain circumstances where stamp duty is reduced or overlooked:
So, how can this affect you? And what do you do? If you’re a first time buyer, seeking legal advice is probably your best option. If not make sure to be fully aware that from April 1st you will see a 3% increase in your SDLT.
If you need any advice around the new stamp duty, or simply want to know more, don’t hesitate to contact our team on: 0116 2999 199 or email us on: firstname.lastname@example.org