Stamp Duty Land Tax explained and details of our available Mortgage help!
Stamp Duty Land Tax (SDLT) is a form of tax applied to the purchase price of a property, and is payable by those purchasing the property in question.
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Below we take a more detailed look at Stamp Duty Land Tax and Stamp Duty Rates, as well as explore instances where there are Stamp Duty exemptions. Finally we explore how Shire Direct can help should you need help with a mortgage!
Table of Contents:
What is Stamp Duty Land Tax?
Those purchasing a property in the United Kingdom at a cost of £125,001 or more, will be subject to the payment of Stamp Duty Land Tax (or SDLT for short). Stamp Duty Land Tax replaced 'Stamp Duty' which was abolished in 2003 (just to be clear, where we mention 'Stamp Duty' anywhere else in this article, we do actually mean Stamp Duty Land Tax!).
Stamp Duty Land Tax applies to all purchases of houses, flats and other land or buildings. Remortgages are not affected by Stamp Duty Land Tax.
Stamp Duty Rates | What are the current Stamp Duty Land Tax rates?
The current rates of Stamp Duty Land Tax (SDLT) in the United Kingdom are as follows:
| Purchase Price: | SDLT Rate: |
|---|---|
| Up to £125,000 | 0% |
| £125,001 - £250,000 | 1% |
| £250,001 - £500,000 | 3% |
| £500,001 or more | 4% |
So, if the purchase price of a property you are looking to buy is £125,000 or less, then fortunately you won't have to pay any Stamp Duty Land Tax.
However, if the purchase price is £126,000 then you will have to pay £1,260.00 (1% SDLT). But look at the difference if you are buying a property with a purchase price of £250,000. Here you will still pay 1% SDLT (which amounts to £2,500.00). Just a small increase in the purchase price to £251,000 will take the Stamp Duty Land Tax to a staggering £7,530.00 (3% SDLT)!
Stamp Duty exemptions
So are there any exemptions or exceptions for paying Stamp Duty Land Tax? Well, yes there are indeed a couple of exceptions:
- Currently properties located in designated "Disadvantaged Areas" will not pay Stamp Duty Land Tax where the purchase price is £150,000 or less.
- Zero Carbon (or Carbon Zero) properties. In order to encourage less carbon emissions, certain new properties that comply with government guidelines will be eligible for a full or partial reduction in their Stamp Duty Land Tax liability on their first sale. Further details are available here.
Stamp Duty on Commercial property
Commercial properties are also subject to the Stamp Duty Land Tax. Presently these are the same rates as above for Residential Properties.
So that's Stamp Duty Land Tax in a nutshell!
Need further information and help with Mortgages and the home buying process?
So that wraps up our look at Stamp Duty Land Tax, we hope you found it helpful! Now, if you're looking for further help regarding Stamp Duty Land Tax or help regarding a mortgage and the home buying process then read on for more info as to how Shire Direct can help you!
Shire Direct is authorised and regulated by the Financial Services Authority, and we will provide you with advice and a recommendation on a mortgage product drawn from our extensive portfolio of lenders and plans contained within our lenders panels that are designed to cover your requirements, needs, circumstances, and aspirations - whatever your circumstances!
As you have probably discovered, today's mortgage marketplace is extremely complex, and choosing just the right product for you can be daunting. That's where Shire Direct can really help. Our lender panels are geared to provide a comprehensive selection to enable us to be able to provide the most appropriate scheme for you. We are confident that you will find our approach to be both slick and pragmatic. We'll provide you with a rapid in-principle decision, and we work closely with the lender, solicitor and property valuer to ensure we achieve a suitable offer of mortgage as quickly as possible.
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So, for more information on either Stamp Duty Land Tax or our available mortgage help and a rapid in-principle decision...
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