Stamp Duty Land Tax threshold has temporarily increased to £500,000 with immediate effect
What is Stamp Duty Land Tax (SDLT)?
SDLT is payable on all properties or land purchases in England and Northern Ireland. Previously, people buying property or land paid stamp duty rates of 2% on £125,001-£250,000, 5% on £250,001-£925,000, 10% on £925,001-£1.5m, and 12% on any value above £1.5m.
The threshold has now been increased to £500,000 until March 2021. This means that as long as the purchase completes before the end of March next year many people won’t pay anything all! E.g. someone buying a property at £250,000 will save £2,499!
When is it payable? And how do I pay it?
If you have a solicitor, agent or conveyancer, they’ll usually file your return and pay the tax on your behalf on the day of completion and add the amount to their fees. They can also claim any relief that you may be eligible for. For example, if you’re a first-time buyer no is payable tax up to £300,000 and there’s only 5% payable on any portion between £300,000 and £500,000.
If you’re looking for a mortgage to buy a property call 01332 821 340 for more information.