Stamp Duty reforms on residential property04/12/2014
Stamp duty is being cut for the majority of homebuyers, making it fairer. This change applies if you are buying a home in the UK for over £125,000, if you’re buying a home for less than £937,500, you will pay less stamp duty.
The new rules begin 4 December 2014, though if you completed on the purchase of your property on or before 3 December 2014, but have not yet filed your stamp duty return, you still have to pay stamp duty under the old rules. Whereas if you exchange and complete (or in Scotland, settle) your home purchase on or after 4 December 2014 you will pay stamp duty under the new rules. If you exchanged contracts (or in Scotland, concluded missives) before 4 December but complete on or after that date you will be able to choose whether the old or new rules apply. In the majority of cases you’ll pay less tax under the new rules.
If you are currently in the process of buying a property, generally your solicitor or conveyancer will work out the stamp duty you have to pay. The way you pay your stamp duty is not changing. As before you will need to submit a stamp duty return and pay what you owe within 30days of completing the sale of your property. You still have to submit a return if you are not due to pay any stamp duty on the purchase price of your property, unless the property costs less than £40,000. It is your responsibility to ensure that the return is completed on time, though more people employ a solicitor or conveyancer to complete the return for them. On return of a valid stamp duty return, HRMC will issue a certificate which allows you to register your title to the property at the Land Registry, or in Scotland at the Registers of Scotland.
For more information please contact Mincoffs Residential Conveyancing Team on 0191 281 6151.