Taxes are legitimate in every country of the world, primarily to contribute revenue from their citizens. Government raises such revenues for expenditures. Thus, they can serve their fellow citizens, utilize them in need, and keep emergency support funds. Likewise, Residents of England are subject to Stamp Duty Land Tax imposed by the UK Government whenever they own a property, based on the market value and size of the property.Investors will also need to pay stamp duty on buy to let property. Those buying a second property will pay an additional 3% surcharge on stamp duty purchases, regardless of the property value, and will apply to you even if you currently own your own home.
However, for some people, it becomes a burden. It acts as a deterrent for first-time buyers that increases the overall cost of the property. Many UK citizens also hire professionals like Pearl Lemon Properties, who can guide them to get some money deduction from this Stamp Duty Land Tax when purchasing a new property in the UK. To get some exemption, let us discover a few ways to get some relief from stamp duty land tax.
Be a First-Time Buyer in the UK to Avoid Stamp Duty
Consider buying a home for the first time in the UK, which will effectively cut the cost of paying stamp duty land taxes in the UK on the residential properties. It means if you buy a home for a second time, you have to pay a meager amount as the stamp duty land tax.
This discount you may get if you are a first-time buyer of that country. For instance, if the purchasing amount of the land is less than the £300,000 bracket, no Stamp Duty will be imposed on you. If the amount exceeds the given bracket, you have to pay 5% Stamp Duty land Tax to the government within 14 days of full payment completion.
Stamp Duty Land Tax can be Exempt if the property Comes in a Gift Envelope
If the transfer is a gift and comes as mortgage-free, you can only get some relaxation from the stamp duty land tax in the UK. In this case, the exchange of monetary value does not exist, as a result, Stamp Duty Land Tax exiles.
Another example of reducing SDLT, if the property is inherited in a will from your family ancestors. You can ignore SDLT when you are in a legal separation, and the property comes to you as a part of an agreement through legal procedure. The UK government cannot implement any tax on you, even if the property’s value crosses the SDLT threshold.
Stamp Duty on Land Tax can be Deducted if You Acquire a Second Home in the UK
Purchasing a second home can also reduce your SDLT, but you need to buy that in the UK. For instance, if you have landed in a different country and fall under different tax rules and traveled to the UK to another property, it will count as a second home as per UK Government rule. In that case, the stamp duty land tax is reduced based on the property’s market value. Moreover, Governments of many countries are finding ways to reduce the SDLT cost, to make the buyers more fruitful to let in their new homes.