STAMP Duty Land Tax, or Stamp Duty as it is more commonly known in England and Northern Ireland, is a tax which must be paid if you purchase land or a property which costs more than a specific amount. In Wales, you pay a Land Transaction Tax and in Scotland, you pay a Land and Buildings Transaction Tax.
If you buy a property for less than the threshold you do not have to pay this tax.
In July 2020, in a bid to encourage people to buy property during Covid-19, the Government implemented a Stamp Duty holiday meaning that the first £500,000 of property value was exempt from tax. The nil band threshold returned to pre-Covid levels of £125,000 from October 2021 although stamp duty tax relief is still in place for eligible first time buyers buying a home worth up to £500,000.
Stamp Duty Land Tax
If you are buying your first home, a new home or an additional property, you’ll pay stamp duty. It is to be paid on residential and non-residential properties.
The amount of Stamp Duty you’ll have to pay will vary as there are several different rate bands. It also depends on whether you’re a first time buyer, whether you are purchasing a holiday home and also it’ll depend on how much the property costs and of course where the property is as rates are different in Wales and Scotland.
If you are buying a property in Northern Ireland and England, as a first time buyer, you will not have to pay Stamp Duty on the first £300,000 of the value of your home. This applies if the cost of your property is £500,000 or less. If you are purchasing your first home which costs £500,000, or over, you will not qualify for stamp duty relief and have to pay the standard Stamp Duty. If you property is between £300,000 and £500,000 you will pay five per cent on the amount above £300,000.
If you decide to buy a second home, in England or Northern Ireland, be that an investment property as a buy to let or indeed a holiday home, you’ll need to be aware that the rules and rates around Stamp Duty are different again.
For all of your mortgage requirements, whether you’re a first time buyer, buying an investment home or holiday home, or if you’re considering remortgaging or Equity Release, speak to our team of specialists and we will get the best financial solutions for you. Our team will discuss, with you, the rules around Stamp Duty Land Tax. Email info@wwfp.net and one of our specialists will come back to you.