If you’re a first-time buyer you won’t have to pay stamp duty on the first £300,000 of your house purchase unless you’re buying a property worth over £500,000. If this is the case, you’ll follow the same rules as someone who’s bought a house before.
How does it work for leasehold properties?
You’ll pay the rates shown above on the purchase price of the lease. But, if the rent for that property is more than the stamp duty threshold, you’ll pay 1% of that proportion. This equates to:
It’s worth checking the GOV.uk website
- £250,000 for the period from 1 July 2021 to 30th September 2021
- £125,000 for purchases from 1st October 2021
about leases, as assigned leases (ones that are sold to third parties) work differently.
How can I work out what to pay?
The Government has a handy Stamp Duty Land Tax calculator. It asks a few questions before you start, like whether your new property will be freehold or leasehold, so it’s a good idea to have all the info you need to hand before making a start. You can find the calculator on the Government website, here
When do I need to pay Stamp Duty?
Whatever property you purchase, and whether you’re liable for stamp duty or not, you’ll need to submit a Stamp Duty Land Tax return to HMRC within 30 days of completion. There’s a penalty of £100, plus interest, if you don’t file this – even if you don’t need to pay the stamp duty. In most house sales, your solicitor will sort out the return and fees, but it’s worth checking with them for peace of mind.
Can I reduce my stamp duty?
Sometimes, like if you transfer your home’s value (for instance in a divorce) or the deeds (either as a gift or in your will). The GOV.uk website has lots of helpful advice about the types of situations where you might be able to reduce or (negate?) stamp duty, as well as scenarios where you might need to pay more (such as if you own more than one property, or you’re a non-UK resident).
How can I save up for a new home?
At Beehive Money, we help you save for a brighter future. Whether it’s a first home, savings for a rainy day or something else, check out our accounts
and savings tips