When you purchase land or property in England or Northern Ireland, you must pay what is known as Stamp Duty. You pay this duty when you buy a freehold property, purchase an existing or new leasehold property, use a shared ownership scheme to buy property, or have transferred ownership of land or property in exchange for payment. Depending on the property’s value, you can end up paying a lot of duty on the property or land you purchase, and there are some circumstances that you can claim back the Stamp Duty you pay.
When Do You Pay Stamp Duty?
In England and Northern Ireland, you will pay Stamp Duty when purchasing land or property that has a value exceeding £125,000 for residential properties and £150,000 for commercial properties. There is also another threshold for first-time buyers, and if they purchase a property less than £500,00, you will pay less or no tax at all. The thresholds can also change if you own more than one property or are not a UK resident. There are circumstances where you do not have to pay Stamp Duty, such as purchasing a houseboat, caravan, or mobile home, and if you buy a property or share of a property that is less than £40,000. You can click here to find out more about the Stamp Duty charges and thresholds so you can fully understand what you will pay depending on your circumstance.
Paying Stamp Duty Is Unavoidable
You need to err on the side of caution if you want to try and not pay stamp duty, and this is a formal tax levied on all people and corporations that buy property. Purposely trying to avoid paying stamp duty can get you in a lot of trouble, so it is not advisable to do in any circumstances. Some property owners have difficulty selling their property and end up having two, meaning they must pay the stamp duty on it. However, you can get stamp duty refunds in some circumstances, depending on whether you are eligible or not. You will need to research whether you qualify or not, or you can consult with a reputable conveyancing solicitor.
Applying For A Stamp Duty Refund
Working out whether you are eligible for a refund and how much is not always straightforward. However, this is something that you can do yourself if you can spare the time and effort required, but a refund is not automatically given if you are entitled, so you need to apply for it. You can apply for a refund by filling out the online form on the government website or printing it off, filling it out, and sending it in via Royal Mail. However, you can also use the services of an experienced conveyancing solicitor who can do the task for you and work out everything accurately if you wish. Once everything is in order with your claim and it has been successfully submitted, you can expect the process to take around 15 days, by which time you will receive your refund if you are eligible.
