When buying a residential property, many costs are involved. In addition to the actual cost of the property, there are other add-on costs including surveyor and legal fees and Stamp Duty Land Tax (SDLT), commonly referred to as “stamp duty”.
However, there may be reliefs and exceptions in certain cases. Here, Elizabeth Jennings, Mander Hadley’s Head of Residential Conveyancing explains who is exempt from paying stamp duty:
Who pays stamp duty?
If you live in England or Northern Ireland, as of 23 September 2022 you no longer pay SDLT on the first £250,000 of a property’s value. Separate arrangements apply in Wales and Scotland.
For first-time buyers, there is no SDLT on the first £425,000 of the value of properties valued at less than £625,000.
It is the duty of the home buyer to pay the SDLT and not the seller. This is normally paid by your solicitor on your behalf as part of the purchase process.
What are the reliefs and exemptions from SDLT?
HM Revenue & Customs (HMRC) stipulates that an SDLT return must be completed, even if no tax is due, for:
The tax authority says you do not have to pay SDLT or file a return if:
It is advisable to seek professional advice when dealing with stamp duty issues to ensure that you do not fall foul of HMRC’s complicated rules.
For more information on stamp duty and the various reliefs and exemptions that are available, please get in touch with our expert team.
Director - Commercial Property & Charities
I joined Mander Hadley in 2004, qualified as a solicitor in 2006 and have focussed on commercial law throughout. I am also a member of Coventry and Warwickshire First and Warwickshire Law Society.
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