UK’s house prices are rapidly fluctuating depending on where the location of your property is, overall more property owners are having to pay stamp duty land tax.
Stamp duty land tax (SDLT) more commonly known as just stamp duty is a lump-sum tax that anyone buying property or land costing more than a set amount has to pay. The rate you’ll pay the tax at varies based on the price & type of the property it is.
Stamp duty applies to properties that cost over £125,000 except in Scotland where since 1 April 2015 Stamp Duty doesn’t apply. Instead you’ll now pay Land and Buildings Transaction Tax when you buy a property. This tax applies to both freehold and leasehold properties – whether you’re buying outright or with a mortgage.
How much is stamp duty
You pay 0% for the first £125,000, 2% on the portion up to £250,000, 5% up to £925,000, 10% up to £1.5m and 12% on anything above that
How to pay stamp duty
Firstly, you will need to submit a Stamp duty land tax return and pay what is owed within 30 days. Even if your new property is worth less than £125,000 you will still need to submit the return. You can do the stamp duty yourself or get your solicitor to do it. Either way, it must be submitted on time or you will receive a £100 fine plus interest.
When do i not pay stamp duty
Stamp Duty is void if you buy a property below £125,000 but for many people this just isn’t possible.
There are many other situations where stamp duty is not payable, for more information visit HMRC Website
If you’re unsure of how much stamp duty you need to pay, if any, this calculator and guide from Money Saving Expert will help you work out.
Check it out now: http://www.moneysavingexpert.com/mortgages/stamp-duty