Property Tax

It is important to understand the tax laws if you are considering buying a property. Below you will find an explanation on the most common of property taxes.

Stamp Duty Land Tax
If a property is bought in the United Kingdom for a certain price, you are eligible to pay a Stamp Duty Land Tax (stamp duty). It is a tax based on the documents that transfer the ownership of a property.

In certain areas known as 'disadvantaged areas', a different level of Stamp Duty Land Tax is used. This means that no tax is required to be paid if certain things apply to the property being purchased:

• The property is located in a 'disadvantaged area'.
• The property is residential.
• The price of the property is £150,000 or less.

If you are purchasing a property, you have the full responsibility for paying the Stamp Duty Land Tax. This is done by completing the relevant land transaction forms. However, it is more than likely that your solicitor will deal with such issues for you so be sure to discuss all the details with them at some point.

How to Pay Stamp Duty Land Tax
Stamp duty land tax is only eligible on property over the value of £125,000. This can range from between 1% and 4%. No tax is eligible on any residential property below this amount.

The table below shows the different bands of stamp duty land tax: