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Stamp duty tax on land and properties is the tax that is paid on properties that cost over £125,000 in the UK.

This simply means that when an individual buys their first property that costs less than £125,000, they do not have to pay stamp duty.

The rate of stamp duty tax paid on the land.

The rate of the tax paid depends on the following most times:

  •  For properties bought by first-time buyers, there are different rates for individuals that buy properties that cost less than £500,000.
  • When buying landed property in the UK for the first time (first-time buyers).
  • If they are purchasing additional properties.
  • Replacing their main residence.
  • If the property is residential or non-residential property.
  • Also, it depends on if it is an individual purchasing the property or an organization.
  • If the property is a Freehold or Leasehold.

If you would like to get an estimate of stamp duty due on the purchase of a property, you can use the HMRC calculator

stamp duty

How to make declarations and pay the stamp duty tax?

When you purchase a landed property, you will have to submit stamp duty returns and pay tax.

The tax is due for payments within 30 days of completion on the property.

The recent changes to stamp duty tax refunds due to COVID 19.

When an individual acquires a new house before disposing of their main residence, they are not first-time buyers.

They would have to pay stamp duty on the new property as it will not be their first-time purchase.

However, if they can dispose of their interest in the property within 3 years of acquiring their new main residence they could claim a refund for the stamp duty paid.

They will have to make a claim to HMRC  to receive refunds.

The changes that were introduced due to COVID 19 is that the 3 years’ time has been extended.

This is because the property has been affected due by pandemics which would invariably hinder most people from selling their old main residence.

stamp duty

Conditions to meet to qualify for an extension of 3 years for a refund of stamp duty tax.

You must be able to prove that you have been unable to sell the property due to reasons out of your control.

The impact of coronavirus (COVID-19) has prevented the sale of the property.

An action was taken by a public authority to prevent the sale which is the case when the pandemic occurred.

You will have to write to HMRC explaining to them the circumstances that led to you being unable to sell the previous property.

If you would like us to support you with your refund claims, kindly contact us