Former Chancellor Kwasi Kwarteng has announced changes to stamp duty land tax when purchasing residential property.
From 23 September 2022, fewer households will have to pay stamp duty, and it will only apply to homeowners whose home price is above a certain threshold.
Stamp duty land tax (SDLT) is charged on the purchase of property or land. You will have to pay SDLT if you live in England or Northern Ireland.
You will also have to pay it if you buy a freehold property, new or existing leasehold, a property through a shared ownership scheme, or are transferred land or property in exchange for payment, (e.g. take on a mortgage or buy a share in a house)
The current SDLT thresholds are £250,000 for residential properties, £425,000 for first-time buyers buying a residential property worth £625,000 or less, and £150,000 for non-residential land and properties.
The amount you pay will differ depending on the property or land type, and you could also be eligible for relief or exemption.
To pay it, you can send an SDLT return to HMRC and pay the tax within 14 days of completion. You can also ask your solicitor or conveyancer to file the return and pay it on your behalf.
For more information about SDLT, contact our conveyancing team at Kingswell Watts on 01924 461 236, or email enquiries@kingswellwatts.co.uk.
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