When you buy a home, it is a huge decision and possibly the most expensive thing you will ever buy. As well as the price of the property, you will also have the additional costs incurred – from solicitor’s fees to removal costs – and then of course there is stamp duty.
Stamp duty Land Tax or SLDT for short is a type of tax that is paid on the purchase of a property in England as well as in Northern Ireland, but there are similar taxes in Scotland and Wales too. It is not a set amount and will vary depending on several factors – whether the property that you are buying is a second home, the price of the property, whether you are buying a holiday home and whether or not you are a first-time buyer will all be factors that will determine what you pay in stamp duty.
As well as Stamp Duty itself there is also a surcharge on top the stamp duty payment that applies if you are buying a second home that is costing more than £40,000, and if you are buying a property to let out as a landlord.
However, recently the laws around stamp duty have changed in with a view to boosting the economy and getting the housing market moving, a stamp duty holiday was brought in around a year ago to encourage people to buy property.
Many people are also not aware that in some cases it may be possible to get a stamp duty refund, even if you purchased your home a few years ago – it is certainly worth looking into it if you have purchased a property and paid stamp duty in the last few years.