Many people have asked about what taxes come with purchasing properties, especially first time buyers. This is because if it is their first time purchasing the property, they will not be familiar with the buying process, and what it intakes (such as, extra expenses, time period etc…)
The main tax that you will get from purchasing a property is Stamp Duty Land Tax. SDLT is paid after the purchased property is over a certain amount of money. The current SDLT threshold is £125,000 for residential properties and £150,000 for non-residential land and properties. Most properties tend to be over this amount, so it is very common for stamp duty land tax to be paid after purchasing.
There are different rules if you’re buying your first property. You get a discount that means you pay less or no tax if: the purchase price is £500,000 or less, or you, and anyone else you’re buying with, are first-time buyers. So, if you are a first time buyer wondering if you need to pay extra tax, chances are you do not, or you have to pay a smaller amount.
You pay different amounts depending on a couple of different circumstances. These are:
- Using the property residentially or non-residentially
- Whether you are a first time buyer.
If you want to know how much you will have to pay, then make sure to check out the HMRC SDLT tax calculator. Ig you would like any other information on property tax, or anything else to do with property, then please contact Kilnstone Property today on the contact details below:
Email: [email protected]
Phone: 01293 278312