West Bridgford solicitors Elvin Moore clarify rules concerning Stamp Duty Land Tax.
Although tax is rarely an exciting topic of conversation it is often an extra consideration (and expense!) when buying a property. Stamp Duty Land Tax (SDLT) is a mandatory tax for which property purchasers are liable and until recently was relatively simply to calculate. However, following several Government changes in the last few years many people are now unsure as to the amounts payable and as property lawyers we are often asked the question ‘how much SDLT will I have to pay?’
There are several rate bands for SDLT and these bands are determined by the purchase price of the property. There are also up to 27 possible reliefs available, including first time buyer’s relief. So good news if you are an individual who is a first time buyer as you will no longer have to pay SDLT on your home worth up to £300,000.
However, individuals buying second homes will have to pay an extra 3% in SDLT on top of the current rates for each band. Furthermore, if you buy a new main residence but there is a delay in selling your previous main residence, you will have to pay the higher SDLT as you will own two properties (albeit a refund can be applied for if the first property is sold within 3 years).
To complicate things further different rules apply for commercial properties and corporate entities purchasing residential properties.
To help clarify, here are some examples of the potential SDLT costs for different types of individuals buying a home:
As you can see, the potential liabilities differ vastly depending on your circumstances and therefore it is important to speak to experts.
Property lawyers at Elvin Moore Solicitors deal with a range of property transactions for individuals and business buying residential and commercial property.
So, if you are considering purchasing a property of any kind and would like more information as to the potential SDLT liabilities, please call us on 0333 023 2250.