How much stamp duty will I pay when buying a property in Paddington?
The amount of stamp duty you have to pay depends on the price of the property you are buying and why you are buying it. The stamp duty on second homes or buy to let properties will be higher than buying your main home.
Stamp Duty or to give it its correct title Stamp Duty Land Tax, is as its name implies, a tax. Moreover, it is a tax that nearly everyone who buys a property in England, Wales, or Northern Ireland must pay.
There are exception to this rule.
There is no stamp duty on properties worth £125,000 or less. This will not be relevant to the prime areas we sell in.
If a property is in the name of an off shore company and the sole asset is the property you can by the shares of the company with the asset being the property. However there are other annual tax charges buying a property in this way.
Like many taxes imposed by the government, there is an air of complication in how the tax is applied.
The table below illustrates how the rate of stamp duty increases along with the price of the property.
The following table gives you some examples of how the tax affects prices.
These figures only apply to residential not commercial properties.
Is there a way to reduce Stamp Duty?
If your seller is including any moveable items in the price, Items such as wardrobes, carpets etc., you can arrange to buy these for a reasonable price and deduct the cost from the purchase price.
Your conveyancing solicitor will advise you on this.
When do I have to pay the Stamp Duty?
The Stamp duty must be paid to HMRC 30 days from your completion date .Your conveyancing solicitor will take care of this for you, as missing the 30-day limit could earn you a fine.