Many people ask what is SDLT/Stamp Duty Land Tax and we have the answers thanks to David Hannah of Cornerstone Tax Advisors who has provided us with this short video to explain.
If you buy property or land in England or Northern Ireland over a certain price you must pay Stamp Duty Land Tax, should you purchase in Scotland you must pay Land & Buildings Transactions Tax whilst buying in Wales you will need to pay Land Transaction Tax if the sale was completed on or after the 1st April 2018.
You should pay tax when you buy a freehold property, buy a new or existing leasehold, buy a property through a shared ownership scheme or are transferring land or property in exchange for payment.
There are two main thresholds where paying SDLT starts to apply. From April 1st 2021 this starts at £125,000 for residential properties and £150,000 for non-residential properties and land. Should the land/property you are purchasing be under either of these thresholds you will not need to pay SDLT.
Should you purchase a property between now and 31st March 2021 the threshold for paying SDLT on residential properties is £500,000 so any purchases below this you need not to pay SDLT. Should you purchase non-residential land or property you will still need to pay SDLT should your purchase be above £150k.
First time buyers will get a relief from paying Stamp Duty Land Tax should their property be under £500,000 but for multiple property owners including investors and landlords things are much more confusing. Thankfully however for those concerned David explains above.
For more information visit the gov.uk site and watch our video above for further guidance.