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Stamp Duty Explained

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.

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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.

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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.

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