personal finance

Stamp Duty Land Tax UK: When do you have to pay SDLT? Deadline was brought forward in 2019


Stamp Duty Land Tax is usually payable on the portion of a property or piece of land, valued greater than the threshold. At the time of writing, the current SDLT threshold is £125,000 for residential properties, and £150,000 for non-residential land and properties. Should a person be buying their first home, they may be able to claim Stamp Duty Land Tax relief. Otherwise, the tax is payable when a purchaser buys a freehold property, buys a new or existing leasehold, buys a property through a shared ownership scheme, or is transferred land or property in exchange for payment, valued above the threshold.

The amount that is paid in SDLT will depend on a number of factors.

This includes whether the property is residential and the buyer or buyers are purchasing a new or existing leasehold.

Non-residential and mixed use land and property will also have different rates.

The deadline for paying SDLT is 14 days of completion of the purchase – with an SDLT return being required to be sent to HMRC within these 14 days.

It may be that a solicitor, agent or conveyancer will file the return and pay the tax on the buyer’s behalf – and then adding the amount to their fees.

Gov.uk warn that penalties and interest may be charged, should a person not file their return and make the payment with the 14-day window following completion.

This deadline came into effect earlier this year, on March 1 2019.

Prior to this date, the SDLT return had to be submitted to HMRC within 30 days of the effective date.

Some people may be eligible to apply for a SDLT refund, due to a change in the rules which was announced during The Budget 2018 last year.

SDLT relief was extended to those who had purchased a shared ownership property – with this discount being retrospective to November 22, 2017.

This means that first-time buyers who bought a shared ownership home between this date and October 29, 2018, may be able to claim some of the tax back – if the property is priced at £500,000 or less.

For some people, the key to buying a home may be taking out a mortgage.

Recently, one homeowner revealed they had made a simple financial move, which had led to them reducing their monthly repayment by £1,000.

Writing on Mumsnet, the homeowner explained that she had previously been unaware that there were better rates available than the lender’s Standard Variable Rate (SVR).

The Money Advice Service advises that the SVR will usually be higher than other rates being offered on the market.

And, it seemed that that was the case for this borrower, who said that they had requested a “rate change” – prompting the interest rate to reduce from nearly five per cent to just over one per cent.



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