Stamp Duty Land Tax (SDLT) is payable when buying a property or land in England and Northern Ireland. However, here are ten such scenarios where you may be exempt, i.e., you don’t have to pay SDLT:
Property Transfers in Divorce or Separation: If you’re transferring a portion of your home’s value to your spouse or civil partner due to divorce or dissolution of your civil partnership, you won’t need to pay SDLT.
Inheritance: If you inherit a property, you don’t have to pay SDLT. However, if you buy a share of a property from other beneficiaries, you might have to pay.
Gifts: If a property is gifted to you and there is no outstanding mortgage on it, then you don’t need to pay SDLT.
First-Time Buyers: If you’re a first-time buyer looking to buy a property worth up to £500,000.00, then you may be exempt or get a discount if the property value is more than £300,000.00.
Property is Worth Less Than SDLT Threshold: If the property value is under the SDLT threshold, you won’t have to pay SDLT. Charitable Organizations: If a property is bought for a charity or transferred to a charity, it may be exempt from SDLT.
Government Bodies: Local authorities, government departments and bodies acting in the public interest, like housing associations, are exempt from SDLT.
Compensation: If you’re awarded a property as compensation, such as in a court case, you won’t need to pay SDLT.
Right to Buy Properties: If you’re buying your council house, you may get a discount which could potentially eliminate your SDLT.
Transfer of property in exchange for payment in kind: If you exchange properties with another person, SDLT will not be due on this transaction if no additional payment is made.
Please contact Peer Accoutants at 0121 369 0695 or email info@peeraccountants.co.uk if you need more information about SDLT or any other taxes.