Property News

On The Market - Only showing 8% coverage compared to Zoopla and Prime Location.

!

20th February 2015

Source data looking at DA1.



STAMP DUTY GAME CHANGER:

You have to pay Stamp Duty Land Tax (SDLT) if you buy a property in the UK over a certain price. This is charged on all purchases of houses, flats and other land and buildings.

From 1 April 2015 SDLT won’t apply in Scotland. Instead you’ll pay Land and Buildings Transaction Tax when you buy a property.

The SDLT rate depends on:

- the purchase price of the property

- whether the property is residential

SDLT may also be due if you lease a property.

Rates from 4 December 2014

Residential properties:

You’ll pay:

nothing on the first £125,000 of the property price

2% on the next £125,000

5% on the next £675,000

10% on the next £575,000

12% on the rest (above £1.5 million)

Example:

If you buy a property for £275,000, you’ll pay £3,750 of SDLT. This is made up of:

nothing on the first £125,000

£2,500 on the next £125,000

£1,250 on the remaining £25,000

Use the HM Revenue and Customs (HMRC) SDLT calculator to work out how much you’ll pay.

Corporate bodies:

SDLT is charged at 15% on residential properties costing more than £500,000 bought by bodies like:

- companies

- collective investment schemes

There are some exceptions. For example, you pay SDLT based on the new rates and bands where the property is used for:

- a property rental business

- a property development or resale trade

- providing admission to visitors on a commercial basis

Residential leases:

If your residential lease is for more than £125,000, you’ll pay 1% SDLT on the amount above the £125,000 threshold.

Non-residential and mixed-use properties:

You’ll pay:

- nothing on the property price, premium or value up to £150,000 (annual rent less than £1,000)

- 1% on properties up to £150,000 (annual rent £1,000 or more)

- 1% on properties between £150,001 and £250,000 (rent £1,000 or more)

- 3% on properties between £250,001 and £500,000 (rent £1,000 or more)

- 4% on properties over £500,000 (rent £1,000 or more)

Use the HMRC SDLT calculator to work out how much you’ll pay.

Special rules for SDLT:-

There are special rules for SDLT when you:

- buy 2 or more properties from someone you’re ‘connected to’ (eg a relative or business partner)

- buy property through a shared ownership scheme

- transfer ownership of a property through marriage, civil partnership, divorce, from a will or to a company

Last updated: 21 January 2015

Source: gov.uk

Online Agent UK
Registered No. 08477297
Registered in England and Wales
Phone0844 257 8448
Local Rate: 01622 239 946
info@onlineagentuk.com

  • Online Agent UK
  • Registered No. 08477297
  • Registered in England and Wales
  • Phone0844 257 8448
  • Local Rate: 01622 239 946
  • Email info@onlineagentuk.com
  • Online Agent UK