Whether you are purchasing property for the first time or looking to purchase your forever home, there are many different financial implications that you may face. Recent changes to the amount of stamp duty a buyer can expect to pay can seem challenging to understand, and here we explain the stamp duty land tax threshold change in more detail.
Residential Property Rates
It is usual for you to pay the Stamp Duty Land Tax (SDLT) of a property’s price when you are seeking to purchase residential property; for example, if you are purchasing a house, bungalow or apartment/flat. However, it is worth noting that this is only applicable to properties that are worth more than a certain set value, and the amount you pay will depend on the value of the property and what you paid for it, as well as when you purchased the property.
Rates For A Single Property
If the property you are buying will be the only residential property you own, the following rates will apply:
Property value SDLT rate
Up to £250,000 0%
The next £675,000 (the portion from £250,001 to £925,000) 5%
The next £575,000 (the portion from £925,001 to £1.5 million) 10%
The remaining amount (the portion above £1.5 million) 12%
If you own more than one residential property, you can expect to pay 3% on top of these rates.
If You’re Buying Your First Home
If you are purchasing your first home, stamp duty relief might be available to you to encourage you to get on the property ladder. For example, you will not be required to pay SDLT on a property that is worth less than £425,000. Over this amount, you will be expected to pay 5% on properties up to £625,000.
If you are buying with a friend or partner, you both need to be first-time buyers to qualify for the relief, so take the time to seek advice on whether this could apply to you.
How Bowsers Can Help
If you are purchasing a property, then you should fully investigate the implications of the SDLT on your property and how this could impact you. Speaking to a professional is a great first step, so get in touch with Bowsers Solicitors to see how we can support you during the home buying process.
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