Stamp Duty
Stamp Duty Land Tax

• You pay SDLT when you buy a freehold property above £125,000 in Value. 
• First Time Buyers will pay SDLT on properties valued at £300,000 and above.
• When you buy a second home, you have to pay extra stamp duty, and is refundable if the old house is sold within three years.
• When you buy a property through a shared ownership scheme
• When land or property is transferred in exchange for payment exceeding the threshold.

Several firms provide purchase plans, agreements, etc. and claim to reduce SDLT. The scheme providers give documentation that the arrangement is substantial, and an insurance policy to indemnify purchasers has been in place if HMRC inquires. Once HMRC is informed, or they start an inquiry, the providers frequently disappear, leaving purchasers to pay the tax, penalty, and interest (and, of course, the fees paid to the promoter is a loss). We don’t promote, endorse, or advise buyers to join schemes or arrangements. Our rule of thumb is that if it appears too good to be true, it typically is.

No SDLT is payable on inherited properties, although this may affect a buyer’s circumstances.  The 3% surcharge won’t be charged if the inherited share was 50% or less and it happened three years or under after purchasing an interest in a primary residence.  The 3% surcharge may be applicable if the inherited share was greater than 50% or if it occurred more than three years ago. But, depending on the situation, the purchase may meet the condition that it replaces the main home.