Stamp Duty (SD) is a form of tax that you pay when you purchase property or land, however, it is thought that many have overpaid on tax and are due relief through multiple exemptions. The main one is Multiple Dwelling Relief or MDR, as it is usually abbreviated.
Stamp Duty Explained
If you have ever bought and/or sold a property in England, you’ve probably heard of Stamp Duty or if you watch the news you may have heard news presenters talking about the ‘Stamp Duty Holiday’. It is commonly called Stamp Duty however its full name is Stamp Duty Land Tax (SDLT) and only applied to England and Northern Ireland, in Wales, it is known as Land Transaction Tax and in Scotland; Land and Buildings Transaction Tax, both carrying different rates of taxation.
Rates of taxation also vary in England and Northern Ireland, the most basic factors that affect the rate are: If you’re a first-time buyer, a non-UK resident or if you’re buying a second property for example a holiday home. There are a lot of lesser-known factors that are also usually missed by Solicitors and Conveyancers as this is a topic best suited to tax experts. A lack of information online has contributed to missed tax relief as well as the HMRC calculator as this is more of an estimation tool rather than a calculator. Long reply times from HMRC about potential relief is usually missed out as sellers and buyers are usually working to time constraints to finalise sales/purchases.
If you would like to find out more about rates of tax for Stamp Duty you can do so on our more in-depth blog post.