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S.42 of Finance Act 2003.
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. - ·
SDLT no longer applies in Scotland. Instead
you pay Land
and Buildings Transaction Tax when you buy a property.
You pay the tax when you:
- ·
buy a freehold property - ·
buy a new or existing leasehold - ·
buy a property through a shared
ownership scheme - ·
are transferred
land or property in exchange for payment, eg you take on a mortgage or
buy a share in a house
Rates – How much you pay depends on whether the land or
property is:
- ·
residential - ·
non-residential
or mixed-use - ·
You can use HM Revenue and Customs’ (HMRC) Stamp Duty Land
Tax calculator to work out how much tax you’ll pay. (There’s a
differentcalculator for
leases.) - You may be able to reduce the amount of tax you
pay by claiming
relief, eg if you buy more than one property (‘multiple dwellings’). - The value you pay SDLT on (the ‘consideration’)
- The total value you pay SDLT on (sometimes called the ‘consideration’) is usually the price you pay for the property or land.
- Sometimes it might include another type of payment like:
o
Goods
o
works or services
o
release from a debt
o
transfer of a debt, including the value of any
outstanding mortgage
o
Find out how
to work out the consideration if your situation is complicated.
·
How and when to pay
- ·
You must send an SDLT return
to HMRC and pay the tax within 30 days of completion. - ·
If you have a solicitor, agent or conveyancer,
they’ll usually file your return and pay the tax on your behalf on the day of
completion and add the amount to their fees. - ·
If they don’t do this for you, you can file a return and pay the tax yourself. - ·
There are certain situations where you don’t
need to send a return.
