Anyone buying property will want to know what stamp duty is. Here is a brief explanation of the most important points about what stamp duty is and how it works.
Stamp duty is a form of tax that buyers might have to pay if they purchase land or a property over a certain price. There are different rates for the amount of stamp duty that needs to be paid. Stamp duty is not payable on a certain percentage of the purchase price until it reaches a certain amount with the first £125000 allowed at 0% stamp duty.
For those buying a second property, there will be an additional percentage payable on top. What can sometimes happen is that people buy a second property before having sold their previous property. When this occurs, people will pay a higher rate of stamp duty. When the previous home is sold within 3 years, a refund in that higher rate of stamp duty can be applied for. For a Stamp Duty Refund, visit www.sentientsdlt.co.uk
Normally, stamp duty is taken care of by your conveyancing solicitor. You can do it by yourself but there is a time limit to submit the return or a penalty could be issued. It is easier and more reliable for an experienced solicitor to do this on your behalf.
There are some circumstances when stamp duty is not payable, for example, a transfer in equity following a court order after divorce, a property left in a will or a gifted property that has no outstanding mortgage.