Stamp Duty Land Tax explained
What is Stamp Duty Land Tax?
When purchasing a property in the UK there are a number of costs you will have to pay. For example: legal costs, mortgage application and compulsory search fees. Not forgetting Stamp Duty Land Tax. (SDLT)
Stamp Duty Land Tax applies to all properties and land registered in the UK. Whether the property is brand new, second hand or derelict. This tax applies to both freehold and leasehold properties – whether you are buying outright or with a mortgage.
Do first time buyers pay Stamp Duty?
If you have just stepped on the property ladder and are purchasing your first home, you may still need to pay Stamp Duty. If the property is under £300,000, you are exempt from Stamp Duty, as the rate is 0%. Over this threshold, properties costing up to £500,000, you will pay no Stamp Duty on the first £300,000. You will pay Stamp Duty on the remaining amount, up to £200,000.
How Stamp Duty is calculated
In the UK and Northern Ireland, rate bands apply for Stamp Duty Land Tax. If the property price is under £125,000 you are eligible for tax relief and will pay 0% tax. After the above property purchase prices, the rates will look like this: –
Purchase Price Stamp Duty tax rate
£0 – £125,000 0%
£125,000 – £250,000 2%
£250,000 – £925,000 5%
£925,000 – £1.5m 10%
Over £1.5m 12%
The tax is calculated on the part of the property purchase price falling within each band. To calculate how much tax you would pay, please click here
If you are purchasing a residential leasehold property or an additional residential property (second home, buy-to-let) different will rates apply.
Why choose us?
Here at Keelys Solicitors in Lichfield you will find no hidden fees or charges. We proudly offer guaranteed fixed prices. Together with a friendly and fast service from our specialised and dedicated team.
Professional and reliable services at Keelys Solicitors
We have achieved membership of The Law Society’s Conveyancing Quality Scheme. This is the only recognised quality standard for residential property legal work and reflects the high quality and professionalism that we provide to our clients.
Currently, during the Covid -19 lockdown restrictions, our clients are still able to continue with their conveyancing matters with strictly adhering to the government’s advice. We too at Keelys are continuing to protect the health and wellbeing of our staff and clients, so our office will remain closed. Our staff are working remotely via email or telephone. Also, all meetings will be conducted by Skype, FaceTime or WhatsApp video. Feel free to contact our team on 01543 420 000. Or simply email https://www.keelys.co.uk/contact-us/