The summer is usually a quieter time on the property market so take advantage of this to prepare for the Autumn surge. These tips will help you get your house ready and get the best price, as quickly as possible. Continue reading ..

STAMP DUTY

Stamp Duty Land Tax also known as SDLT is payable by a purchaser of a property or land.

This tax is paid on the following occasions:

  • buy a free hold property
  • buy a leasehold property
  • buy through shared ownership

The amount of tax you will need to pay depends if the property is a residential or non residential such as land, shops or offices. The value of the premiss need to be over £125,000 from where this tax is payable.

You will need to pay HMRC within 30 days of completion of the sale. This is usually processed by your chosen solicitor or agent who will arrange to pay this on your behalf. Alternatively you can arrange payment yourself and file a return to HMRC. Do be careful as failure to submit your payments promptly will incur penalty charges!

I am sure you are all aware this change will come into force from 1st April 2016 so if you are currently purchasing a property it may be wise to put some pressure on your legal team as the clock is ticking.

From 1st April the stamp duty charges will increase by a further 3% for those who are looking to buy to let or are purchasing their second home:

Band                           Standard Rate                              Buy to Let/ Second Home

Up to £125,000                        0%                                                     3%

£125,001 – £250,000               2%                                                     5%

£250,001 – £925,000               5%                                                     8%

£925,001 – £1.5m                    10%                                                   13%

£1.5m and over                        12%                                                  15%

 

SDLT can also be reduced if free standing fixtures and fittings are removed. These can be items such as carpets, fridge/ freezers, curtains, and wardrobes. Any items fitted to the property such as plug sockets, fitted wardrobes cannot be removed from the value of the property price.

There are only 15 days to go before the 1st of April…