Stamp duty - do I need to pay it?
Posted on 15th May 2019
In its simplest form stamp duty is a tax that is paid for the privilege of buying property! Not everyone has to pay stamp duty but most people do. See this blog post to see if you need to pay stamp duty
If we assume everybody has to pay stamp duty and then look at the people that don’t have to pay stamp duty that’s probably easiest way round it.
The list below is a list of situations where you will not have to pay stamp duty.
1. If you are selling the house you don’t pay stamp duty on the property you are selling.
2. If you are a first time buyer buying a property up to £300,000 you don’t pay stamp duty.
3. You don’t pay stamp duty on a park home or a houseboat in most circumstances, check this with your solicitor if you are unsure.
4. In most situations, stamp duty is not payable on properties up to and including £125,000.
And that’s about it, everybody else will pay stamp duty on the purchase of their next property. There are some areas which are exempt from stamp duty but they are very few and far between. The other thing that people ask quite a lot about when discussing stamp duty is if they need to pay the higher rate stamp duty which is applicable mainly to property investors. So is that payable for you?
Simply put, if you own more properties at the end of the day of completion than you owned at the start of the day of completion then the additional stamp duty tax will be payable. This extra charge is usually payable by property investors but is also payable if you are renting out your current home and buying your main residence as the next purchase. The additional charge is 3% of the full purchase price on top of the standard rate!
This has been one of the main points of conversation over the last two years when speaking with people about their next property, so we will explain more about this in our next blog post.
For more information on this and anything else relating to the housing market just give us a call on 0116 3409989 or to find out a guide on your property's current value go to http://valuation.thepropertyfox.co.uk/
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