Here is a quick explanation of what Stamp Duty Land Tax is and the changes that were introduced in November 2017. You must pay Stamp Duty Land Tax (SDLT) if you buy a property or land over a certain price in England, Wales and Northern Ireland.
The current SDLT threshold is £125,000 for residential properties and £150,000 for non-residential land and properties.
There are different rules if you’re buying your first home. You get a discount (relief) that means you pay less or no tax if:
- you complete your purchase on or after 22 November 2017
- the purchase price is £500,000 or less
- you, and anyone else you’re buying with, are first-time buyers
Relief for first-time buyers was announced by the Government in the Autumn Statement 2017. This stated that:
- First-time buyers paying £300,000 or less for a residential property will pay no SDLT.
- First-time buyers paying between £300,000 and £500,000 will pay SDLT at 5% on the amount of the purchase price in excess of £300,000.
- First time buyers purchasing property for more than £500,000 will not be entitled to any relief and will pay SDLT at the normal rates.
New rules were also introduced to impose an additional Stamp Duty Land Tax charge of 3% on additional residential properties purchased on or after 1 April 2016.
It was also stated that for transactions on or after 22 November 2017, relief from the extra 3% will be given in certain cases including where:
- a divorce-related court order prevents someone from disposing of their interest in the main residence
- a spouse or civil partner buys property from another spouse or civil partner
- a deputy buys property for a child subject to the Court of Protection and
- a purchaser adds to their interest in their current main residence.
The changes also counteract abuse of the relief when someone who changes main residence retains an interest in their former main residence.
The government has confirmed that it will reduce the SDLT filing and payment window from 30 days to 14 days for land transactions with an effective date on or after 1 March 2019.
If you would like to find out more about Stamp Duty Land Tax or any other personal tax issues please do get in touch by calling 01623 4901120 or email