STAMP DUTY ADVICE
Lots of people associate Stamp Duty on property, but it isn’t just on property purchases. There are 3 types of Stamp Duty:
In addition to this Stamp Duty is potentially chargeable if you transfer a mortgage debt between spouses. Stamp Duty Land Tax is therefore an important tax not to be forgotten when property tax planning. With the 3% surcharge on 2nd home purchases, it doesn’t just effect those in property rental businesses but it can also impact couples who both own a property.
There is also an Annual Tax on Enveloped Dwellings to consider for those who hold a property in a company in which they live.
The most common form of Stamp duty an individual may experience personally takes the form of Stamp Duty Land Tax. There are different thresholds for residential and non-residential properties.
These stamp duty rates changed from a slab system to an incremental one, which benefitted the majority of residential transactions of £937k and below. Due to this reduction it made purchasing properties at the cheaper end of the housing market that first time buyers are often trying to purchase more attractive as the stamp duty changes cut the stamp duty land tax paid.
The Government therefore introduced a 3% surcharge for 2nd properties valued £40k and above.