Stamp Duty Land Tax (SDLT) is a form of taxation imposed on properties and lands located in England and Northern Ireland. It is applicable to both freehold and residential properties, as well as the purchase of additional properties. This tax applies to purchases based on bands, similar to Council Tax. In some cases, relief can be claimed and the amount of tax you pay can be reduced.

You'll need to submit your SDLT return to HMRC within 14 days of purchasing a property in order to pay stamp duty. It is possible to receive assistance from either a conveyancer or property solicitor, who typically charge a fee, but they can also help you with claiming any applicable reliefs.

How much stamp duty will I have to pay?

The amount of stamp duty you pay will depend on various factors such as where you are purchasing, who you are buying from and the cost of the property. For example, if you’re a first-time buyer in England or Northern Ireland, then you won’t have to pay Stamp Duty for any purchase up to £250,000.

It is important to be aware of the cost of stamp duty before committing to a property purchase in order to ensure you are not surprised by any additional costs. Furthermore, make sure you have researched the applicable rates in your area and are familiar with any reliefs that may lower your total tax burden. By understanding all the intricacies of Stamp Duty Land Tax, you can ensure that your property purchase is as cost-effective and hassle-free as possible.

Stamp Duty on Buy to Let

According to HMRC, there are roughly 2.5 million buy-to-let landlords in the UK. If you already own properties, you shouldn’t worry about Stamp Duty. However, if you’re planning on purchasing another property, then you need to know about Stamp Duty and how much you’ll need to pay.

If you’re purchasing a second property to let out to tenants, you’ll be required to pay an additional 3% (minimum) on Stamp Duty if the property is over £40,000. You’ll be required to pay this if you’re married or in a civil partnership and your partner owns another property, too.

If you’re buying a property as a company as opposed to as a person/ individual, then you’ll be required to pay the additional Stamp Duty even if the company doesn’t already own any properties. However, certain properties are exempt from additional SDLT charges – for example, mobile homes, caravans, and houseboats.

For more information on stamp duty visit the government website here

This article is for information only and does not constitute advice or a legal opinion. If you require guidance on any aspect of stamp duty land tax, please seek professional advice from an accountant or solicitor.

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