New Stamp Duty Land Tax Thresholds Announced
On Friday 23rd September 2022, it was announced that Stamp Duty Land Tax (SDLT) would be cut with immediate effect. This change affects all purchases on residential properties.
What is Stamp Duty Land Tax?
Stamp duty land tax is a tax paid when you buy a property or land over a certain price in England and Northern Ireland.
New Stamp Duty Land Tax Rates
As of 23rd September 2022, it was announced that stamp duty land tax would no longer be charged on the first £250,000 of a property’s price. This doubles the previous threshold which was £125,000.
First-time buyers have also been granted additional relief. The threshold for first-time buyers has increased to no stamp duty land tax being payable on the first £425,000 of a property’s value. Further relief can be accessed providing that the property costs less than £625,000 and provided that the purchaser(s) intend to occupy the property as their only or main residence.
When is Stamp Duty Land Tax Paid?
The payment of stamp duty land tax is due once the purchase of the property has ‘completed’. This is the stage in the home buying process when the new owners receive the keys to the property and are legally the owners.
In England and Northern Ireland, stamp duty land tax is required to be paid to HM Revenue & Customs (HMRC) within 14 days of completion.
If you have used a solicitor, agent or conveyancer to purchase the property, they will usually complete the required forms and pay the tax on your behalf.
The Wilkes Partnership are able to assist you with selling and purchasing a property. If you have any further questions on what the new stamp duty thresholds mean for you or would like advice on another residential conveyancing query, please contact Asia Bi, Solicitor on [email protected] or Sunny Salam, Solicitor on [email protected]. You can also call on 0121 733 8000.