The stamp duty ‘holiday’, which offered property tax rate exemptions for UK residents, ended at the end of September. Up until September, the threshold for duty exemption was increased to £500,000.
While the September cut-off was an extension from the original March deadline, there is currently no stamp duty related news on other possible extensions.
If you missed the cut for the holiday deadline, you can still pay your stamp duty using the regular method of sending an SDLT return to HM Revenue & Customs (HMRC), and completing the payment at most 14 days after.
You can also file for a stamp duty refund if you are selling your home less than three years after the property’s completion.
What Is a Stamp Duty?
A stamp duty is an obligatory tax paid by UK residents with properties in hand. This only applies if your property is valued at £125,000 or more, and for non-residential lands the threshold increases to £150,000.
First-time buyers are given the relief of paying less to no taxes if the value of their property is £500,000 or less. Non first-time buyers were also able to enjoy this exemption before September 2021.
How Much in Stamp Duty Do I Owe?
The price of the stamp duty is not uniform and depends on your citizenship, how many properties you currently own, and the use of the property (residential or non-residential).
The stamp duty cannot be paid in instalment, and at the latest must be paid within 30 days of the property’s completion.
There are a lot of online stamp duty calculators available that can aid you in calculating the stamp duty fee. Although, these stamp duty calculators are not completely accurate and serve as a guideline.
Also, keep in mind that the amount of stamp duty depends largely on the location of your property. Currently, the most expensive location for stamp duty is Cheltenham, and the cheapest place is Bridgwater.
Is There Any Way I Can Not Pay My Stamp Duty?
The short answer is, no: you cannot avoid paying your stamp duty. It’s a legal, obligatory duty every property owner in the UK must abide by. You can certainly pay lower fees through certain exemptions, but most of the time, you have to pay at least some amount after October 1st, 2021. This is especially true if you are not a first-time buyer.
First-time buyers may be able to avoid paying if their properties are below a certain threshold. To be sure, use online stamp duty calculators to help you out. Using SDLT Avoidance Schemes, which are tactics to exploit the loopholes in SDLT legislation– may cost you more money in the future due to the interest given by HMRC.
Can I Claim a Refund on My Stamp Duty?
Yes. Well, that is, only if you are eligible for a refund.
You are eligible for a stamp duty refund for your second home if, within the last three years, you have sold your first residence and are now staying in the newer residence. All you need to do is complete an SDLT return and pass it along to HMRC through post or by online means.
If you are unsure of the process or want to save yourself from the hassle, you can hire a legal conveyancer or a solicitor to do it for you.
After filing your claim with HMRC, you can expect your stamp duty refund to be processed in about 15 days. You are advised to be wary of any companies contacting you to offer free stamp duty refund services.
These are most likely a scam, and it really is not that difficult to do the task yourself. Go on the gov.uk website to find out more.