Key changes to stamp duty land tax payable in residential transactions
Sponsored feature | Melanya Ponraj, Paralegal, Woodfines Solicitors
As most are aware stamp duty land tax (SDLT) is a mandatory tax paid to His Majesty’s Revenue and Customs (HMRC) on the purchase of a property by the buyer. The amount payable is dependent on the value of the property and circumstances of the buyer. There are a range of reliefs that can be claimed that can reduce or waive the SDLT payable.
SDLT is payable within 14 days from the effective date of the transaction - in simple terms, this is the date the property purchase is completed. This has been reduced down from the previous 30 days making it all the more crucial that we receive the amount payable for SDLT at the same time as any balance needed to complete on a purchase.
Recent changes to residential SDLT rates
These changes are effective on properties purchased on or after September 23, 2022. In summary, the threshold rates as to when SDLT is payable have been increased. This ultimately means buyers may benefit by paying less SDLT.
Some of the changes include:
- There was an increase of the lowest threshold to £250,000 from £125,000
- First Time Buyers’ Relief has been increased to £425,000 from £300,000 where no SDLT is payable. This is applicable for a property purchased up to the value of £625,000 and SDLT will only be payable on the difference.
The new SDLT threshold rates
They are as follows:
0 per cent: £0-£250,000 (£425,000 for first-time buyers)
5 per cent: £250,000-£925,000
10 per cent: £925,000-£1,500,000
12 per cent: £1,500,000+
When you purchase a property with Woodfines, we will complete the SDLT filing and arrange the SDLT payment on your behalf to HMRC. If you would like to receive a quote for our conveyancing services, you can do so at woodfines.wp.perfectportal.co.uk.
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