Do I Have To Pay Stamp Duty?
Stamp Duty Land Tax is calculated on a sliding scale. In other words, how much you pay is based on the price value of your property purchase. Typically, the more expensive the property, the more Stamp Duty you will pay. However, if you’re looking to save money on your house move and wondering whether you HAVE to pay Stamp Duty, we’re looking at circumstances where you might not need to pay.
Is there a way I can avoid paying Stamp Duty?
There are a few instances where you won’t need to pay Stamp Duty:
- Buy a property under a certain price threshold.
Between July 1st and September 30th, 2021 you can receive tax relief on first-time buyer properties up to the value of £250,000.
However, from October 1st Stamp Duty will return to the standard rate, meaning you will only be exempt from paying tax on properties up to the value of £125,000.
If the price is only just within a higher band, you can always negotiate with the estate agent to see if they would accept a slightly lower price.
- Transfer of property during separation or divorce.
If you’re transferring a proportion of your property value to a partner during a divorce or separation, then neither party will need to pay Stamp Duty.
- Transfer of deeds.
If deeds of a property are transferred to you either as a gift or through a will, then you won’t have to pay Stamp Duty.
Aside from the situations outlined above, you will need to pay Stamp Duty.
What is the Stamp Duty for second homes?
If you’re buying a second home, you will need to pay an extra 3% on Stamp Duty. However, if you sell your main residence within three years, you can apply for a refund on the higher tax rates.
We hope this guide on whether you have to pay Stamp Duty has been helpful. If you’re in the market to buy a first or second home, Agentis are on hand to help make that happen. With our expert team of mortgage brokers and advisors by your side, you can find the ideal mortgage for your circumstances, and we can help you budget all your costs effectively. Contact us today to arrange your free initial consultation.
