Buying a home in the UK can be a stressful and expensive task that also takes a lot of time to complete. One thing that opens the eyes of many first-time home buyers is the taxes you must pay to the government when buying or selling property, and this form of taxation is called stamp duty. The amount of stamp duty you will pay on land or property will depend on various factors, and many companies can help you work out what you must pay to give the government their share. However, there are times when you get to claim back the stamp duty you pay, and below, you can find some advice to help you with this and ensure you do not overpay.
When Do You Pay Stamp Duty?
When you purchase land or property in the UK, you must pay stamp duty when it exceeds a specific value. The buyer pays the stamp duty and not the seller, and the amount of stamp duty paid will depend on the value of the property or land. First-time buyers can buy a property valued at up to £500,000.00 without paying any duty. However, if you are not a first-time buyer, you will need to pay the stamp duty, and this amount is linked to the value of the property as follows:
Property Value Up To £125,00.00 – No Stamp Duty Is Due
Property Value Up To £125,00.00 – £250,000.00 – Pay 2% of the property value
Property Value Up To – £250,000.00 – £925,000.00 – Pay 5% of the property value
Property Value Up To – £925,001.00 – £1,500,000.00 – Pay 10% of the property value
Properties valued at above £1,500,000 pay stamp duty at a rate of 12%
To work out your stamp duty, you take the total cost of the property and use the above information. For example, if your house is worth £350,000.00, for the first £125k, there is no stamp duty, and you pay 2% on the cost between £125k and £250k and then 5% on the cost of the remaining property value.
Getting Help With Your Stamp Duty
As you can see above, stamp duty can be confusing, so it is often best to use the services of someone like David Hannah from Cornerstone or another reputable company to help you. They can help you calculate the correct amount of stamp duty you must pay and ensure you do not overpay. You can sometimes claim back the stamp duty on a property, and these companies can also help make this a simple and easy process.
They can assess your current situation, tell you quickly whether you are eligible for a refund on our stamp duty paid, and take care of the paperwork to get your refund. They can ensure the paperwork is correct and help you apply for the refund, and if eligible, you can often receive this within a couple of weeks.
With so much else you need to do when buying or selling a property, sorting out your stamp duty can be a pain, so using the services of a reputable company can help save you time and money.