If you’re considering purchasing a residential property in 2024, it’s essential to understand the Stamp Duty Tax implications. This information is for general reference and should not be solely relied upon. For comprehensive and up-to-date advice, especially tailored to your specific circumstances, consult your property lawyers, accountants, or financial advisers.
When acquiring a property above a certain price, Stamp Duty must be paid to HMRC within 14 days of completion to avoid penalties. Your legal adviser should handle this on your behalf, ensuring you meet the deadline. Some buyers choose to include the Stamp Duty amount in their mortgage loan – discuss this with your mortgage provider.
Stamp Duty Land Tax (SDLT) is a progressive tax applicable when purchasing a freehold, leasehold, or shared ownership residential property over £250,000 in England and Northern Ireland. Different SDLT rates and thresholds apply to non-residential properties or mixed-use land.
The current SDLT rates, payable only on the portion of the property price within each band, were updated in the mini-Budget on September 23rd, as outlined below:
Example:
Property purchase price: £850,000.
First-time buyers are exempt from paying Stamp Duty on the first £425,000 (increased from £300,000 following the mini-Budget), and the maximum property value for claiming this relief has risen to £625,000 from £500,000.
For historical SDLT rates and information on Buy-to-Let and Second Home Stamp Duty, please refer to our resources.
As of April 1, 2021, a 2% Stamp Duty surcharge was introduced for overseas buyers acquiring residential property in England and Northern Ireland. This surcharge applies to non-resident buyers, subject to specific exceptions for certain collective investment vehicles. It is in addition to the 3% Buy-to-Let/Second Homes charge and other relevant Stamp Duty rates.
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