Stamp Duty - Are you eligible for a rebate?

In our latest video we are joined by Ben Gatford of CapEx Associates, to learn a bit more about Stamp Duty Land Tax.

If you have ever purchased a property whether for personal or buy-to-let purposes, the likelihood is you will have paid some form of Stamp Duty. Stamp Duty is tax on property purchases and usually paid upon completion. The rules have changed fairly frequently over the last few years, with various forms of relief especially during the Covid-19 pandemic when it was waived on properties of a certain value.

Currently you pay stamp duty at these rates (source: gov.uk) if, after buying the property, it is the only residential property you own. You usually pay 3% on top of these rates if you own another residential property:

Property value up to £250,000 Zero
The next £675,000 (the portion from £250,001 to £925,000) 5%
The next £575,000 (the portion from £925,001 to £1.5 million) 10%
The remaining amount (the portion above £1.5 million) 12%
First time buyers are exempt up to £425,000.

There are circumstances which Ben explains in the video where homeowners may be eligible for rebates and are commonly associated with:

- Residential properties with annexes/outbuildings
- Residential properties bought in a state of disrepair
- Residential properties with significant land
- Land with development rights
- Commercial and residential in the same purchase
- Commercial being flipped to residential and vice versa (pre completion, or adaptation must have started on day of completion)
- Purpose built student accommodation
- Furnished holiday lets
- Probate purchases

If you would like further information, or wish to discuss whether you may be eligible then please call us on 01202 554470.