What is Stamp duty land tax?
Stamp Duty Land Tax is a government tax on the purchase of property/land. If you purchase a residential property that costs more than £125,000 in England and Northern Ireland, you’ll need to pay stamp duty land tax, separate rules apply to Scotland and Wales. The threshold for non-residential property and land is £150,000.
This can include buying a house or creating/assigning a lease. This means SDLT is payable by the purchaser included in the land transaction. Stamp Duty Land Tax is then collected by HM Revenue and Customs (HMRC). There are a number of stamp duty tax bands with rates progressively rising from lower to higher bands.
There are different rules if you’re buying your first home. You get a discount (relief) that means you pay less or no tax if:
- Price of purchase is £500,000 or less
- You are a First-Time Buyer
How and When To Pay
In usual circumstances, before the completion of your purchase, your solicitor will provide you with a financial statement, and collect and pay your SDLT on your behalf. If this is not completed by your solicitor within 4 weeks, it is still your responsibility, and HMRC will then chase you for the payment alongside any interest or penalties incurred.
Completion will not occur until this payment is made and the property will not be registered in your name until you have made the payment.
How Dale & Co Solicitors Can Help
We can advise on the payment of SDLT. Here at Dale & Co Solicitors, once your property transaction has reached completion, we will file your tax return on your behalf to HMRC, ensuring that your SDLT is paid in full. Once we receive your Stamp Duty Land Tax Certificate, we will register the certificate and you as the new property owner.
Last Updated: Wednesday 24th July 2019
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