Stamp duty cut by Chancellor Jeremy Hunt
The chancellor’s announcement on 17 October overturned a number of tax measures included in the mini-budget on 23 September. Whilst the changes to stamp duty remained in place, these measures are constantly under review and are subject to change by the government. This article reflects the position on 17 October.
What is Stamp Duty Land Tax (SDLT)?
SDLT is a payment which you must make when purchasing a property or land over a certain price in England and Northern Ireland. The rate a buyer must pay depends on the type and price of the property.
What are the major changes?
First-time buyers
The threshold at which first-time buyers paid SDLT was £300,000 but this has now been increased to £425,000. This only applies to properties worth £625,000 or less.
First-time buyer relief
The level at which first-time buyers can claim relief has risen from £500,000 to £625,000.
Minimum threshold for residential properties
SDLT is only now payable when the property you are buying costs more than £250,000. The previous level was £125,000. However, you will usually have to pay 3% on top of SDLT rates if buying a new residential property means you will own more than one.
Who is responsible for paying SDLT?
The buyer must pay the SDLT. You can use the government’s Stamp Duty Land Tax (SDLT) calculator to find out how much you have to pay.
What is the deadline for submitting the SDLT return and paying the tax due?
There is a strict deadline of 14 days from the date of purchase to file a return to HMRC and pay the amount due.
Who submits the SDLT return?
As part of the buying process, we would submit the SDLT return on your behalf and pay the SDLT to HMRC direct.
Please note that this information was correct at the time it was published and you should reference more recent articles and information to ensure you have the most up-to-date information.
If you would like any more information relating to this article then please feel free to contact me: Telephone – 020 8221 8089, via email, or visit my profile: Sadiq Uddin.
This is not legal advice; it is intended to provide information of general interest about current legal issues.
