3 Things You Should Know About Stamp Duty
If you are located in certain countries, you have to pay Stamp Duty if you are buying a home that costs more than a certain amount. There are some concessions made for those who are buying a home for the first time, but generally, there is a fee of 2-10% assessed, depending on the purchase price of the home. Here are a few things you should know so there isn’t any confusion.
- First Time Buyers
In the event that property being purchased is less than £300,000, you will not have to pay any fees at all. If the price is from £300,000 to £500,000, the first £300,000 is free of any charges and the rest is taxed 5%. Any homes that are purchased and are over £500,000 will be subject to the same level of taxation as other buyers.
- Inheriting Property
If you are given property as part of an inheritance, you will not be required to pay Stamp Duty regardless of the value of the home. With that said, if you buy a property after that, it will be subject to the higher tax rate that is charged when people have more than one home. The first-time buyer rates will not apply.
- Married Couples
Marrying someone who already has property means that you will have to pay the higher rates if you decide to buy additional property. The only time that this does not apply is if you decide to buy a property and you are legally separated from your spouse.
This may seem confusing, but it is important that you understand all of this before moving forward and making a home purchase. The more that you know, the easier it will be for you to navigate the process and have everything go as smoothly as possible.