Jamie Side / December 27, 2018
Tags: BlogStamp Duty
With the exception of first-time buyers securing a home valued at under £300,001, everyone who buys a property or land in the UK worth more than £40,000 has to pay stamp duty.
This is a tax on property and applies to both freehold and leasehold homes, as well as commercial premises such as offices, warehouses, retail outlets etc. The tax has to be calculated and paid to HMRC within 30 days of contracts being exchanged for the property (your solicitor or conveyancer will normally see to this).
The whole concept of stamp duty has been played out frequently in the press in recent years. Two years ago, for instance, the government introduced an additional 3% stamp duty on buying a second home and for each additional property after that. It was legislation which affected the strategies of portfolio landlords in particular, and which landlord bodies campaigned against at the time – but to no avail.
More recently, stamp duty has again appeared in the press. This time it has been used by the UK government as a bargaining tool in the hope of attracting more first-time buyers onto the property market. It appears to have worked, but those first-time buyers aren’t in ‘significant’ numbers.
How residential stamp duty is calculated
Stamp duty is calculated at specific rates depending on the value of the property purchased. Property can be slotted into clear bands, such as:
£0 - 125,000 0%
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Tags: BlogStamp Duty
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