If you buy either freehold or leasehold land or property in the UK for over £125,000 you may have to pay Stamp Duty Land Tax (SDLT). This is charged on all purchases of houses, flats and other land and buildings. If the purchase price is less £125,000 you don't pay any SDLT.
The rate at which Stamp Duty is calculated at is as follows:
|
Purchase Price
|
Stamp Duty Rate
|
|
£0 - £125,000
|
0%
|
|
£125,001 > £250,000
|
1%
|
|
£250,001 > £500,000
|
3%
|
|
£500,001 > £1,000,000
|
4%
|
|
£1,000,001 +
|
5%
|
Disadvantaged Areas Relief
If you buy property in an area designated by the government as 'disadvantaged' you may qualify for Disadvantaged Areas Relief; in this case the threshold for SDLT is £150,000.
You can check the HMRC website to see if the property you are buying is (1) in an area designated as disadvantaged or (2) falls under another category which may reduce the amount of tax payable or mean that no SDLT is due.
Filing your SDLT Return
As the buyer of the property you are responsible for completing the land transaction return and paying the SDLT. However we will usually handle this for you and file it with HMRC on your behalf.
Feel free to contact our offices on 0845 458 6291 or email us at info@averyknights.com; whatever the nature of your query we will be more than happy to assist.