Understanding Stamp Duty Charges
If you are currently in the process of buying a property, your solicitor will work out for you the amount of stamp duty you will owe on completion. However, HMRC also has an online calculator to help you work out the amount you will owe.
Since new rules came in during December 2014, you are not liable to pay stamp duty for the first £125,000 value of your property, with set percentages to pay thereafter on the remaining value.
Matthew Quigley, Director of HL Consulting explains, “When the new rules on stamp duty came in, it brought a positive change for the property market. We had seen a shortage of investors and first time buyers throughout the previous years, partly due to the expense of allowing for stamp duty fees. However, since 2015, stamp duty rules have certainly helped those looking to purchase a property towards the bottom end of the scale.
“In addition, the changes also influenced the choices for homebuyers who before were only willing to consider properties below the £250,000 threshold. We’ve since found many more clients broadening their mortgage borrowing to properties over £250,000 by perhaps £10,000 or more.” He added.
How homebuyers pay for stamp duty hasn’t changed, and as before, you will still need to submit a stamp duty return and pay the monies you owe within 30 days of completing on the sale/purchase of your property.
You still have to submit a return even if you are not due to pay any stamp duty on the purchase price of your property, unless the property costs less than £40,000. Although quite often, most people request that their solicitor completes and returns their forms for them.