RENT TO BUY! Tannery Fields. We have re opened applications for one 2 bed property in Tannery Fields, Runcorn (£460PCM). Please head over to our Rent to Buy section and read about what you need to apply. Applications will close again soon as we only have one property available.
Stamp duty land tax is a cost you must pay if you buy any kind of property or land over a certain price. The stamp duty fee you will need to pay will depend on the price of the property you are buying.
You will need to pay stamp duty if the property you are buying costs over £125,000 for residential properties. Non-residential properties and land have a slightly higher stamp duty threshold of £150,000.
You will need to pay stamp duty if:
You will need to pay your land tax when the sale of your property purchase is complete. The tax will need to be paid to your solicitor who will then pay HMRC once your property sale is complete.
If you’re buying your first home, stamp duty rules will differ slightly for you due to there being a discount or ‘relief’ for first time buyers. People buying their first home won’t pay any stamp duty on homes costing £300,000 or less. This rule applies if either you or any other person you are buying with is a first time buyer.
First time buyers purchasing a home costing above £500,000 will not be entitled to any discount, you will be required to pay the standard land tax rate.
Since November 2018, first time buyers purchasing through shared ownership schemes also pay no stamp duty on the first £300,000 of any home costing up to a maximum of £500,000. This means if you’re buying a home costing £300,000 or less through shared ownership and you are a first time buyer, you will not pay any stamp duty.
If you’re a first time buyer who purchases a property priced between £300,000.01 and £500,000, you will pay 5% (on the portion of your home costing more than £300,000).
If you are a first time buyer who bought a property costing less than £500,000 after 22nd November 2017 who has paid stamp duty, you may be eligible for a refund. To claim your refund, you will need to contact the Stamp Duty Land Tax Office directly. You can claim a refund up to 4 years after purchasing your shared ownership property. However, to be eligible for a refund, you must have been a first time buyer who bought their property after 22nd November 2017. To find out more about claiming a refund on land tax paid, please visit the HMRC website.
Shared Ownership is an affordable home buying scheme which allows you to purchase a percentage of a property and pay a discounted rental charge on the remaining portion of the property you do not own. Providers of shared ownership homes are usually housing associations. You are likely to be eligible for shared ownership if your household income is £80,000 a year or less.
The percentage of the property you can buy can vary from anywhere between 25% – 75%, depending on what you can afford.
If you would like to find out more about Open Door’s shared ownership homes, visit our dedicated Shared Ownership webpage.
If you’re unsure about what the best home ownership option may be for you, why not try our free and easy to use Eligibility Calculator by clicking here.
Whether you’re a first time buyer or not, working out how much stamp duty you will need to pay can be confusing. If you would like to find out how much stamp duty you will need to pay on any property, try the Money Saving Expert’s Stamp Duty Calculator.