As a Burnley real estate professional, I’m happy to share this guide called ‘5 Key Things Every Burnley Homeowner Should Know About Stamp Duty.’ As a homeowner, whether you’re new or experienced, Stamp Duty may seem confusing. So let’s break it down to better understand it. My knowledge of Burnley’s housing market allows me to make this guide tailored to Burnley homeowners. I am sure this guide will help you understand stamp duty and how it affects your property buying or selling in Burnley.
1. What Is Stamp Duty?
Stamp Duty Land Tax (SDLT) is a tax you must pay when you buy a property in England and Northern Ireland. If your property is in Burnley, you’re responsible for paying this tax. The amount you pay depends on the purchase price and whether you’re a first-time buyer, buying a second home or buying a rental property.
2. How Much Stamp Duty Will You Pay?
The amount you pay in Stamp Duty changes based on the property’s value and your situation. From July 2021, you don’t owe SDLT on the first £125,000 if you’re buying a property that isn’t your first home. The rate is 2% for properties priced between £125,001 and £250,000. Rates go up as prices do, up to 12% on any amount over £1.5 million.
3. First-Time Buyer Relief
First-time Burnley buyers can get a break from stamp duty. This relief means that properties up to £300,000 are exempt for first-time buyers. If the cost is between £300,001 – £500,000, 5% is charged on the bit over the £300,000 limit. But, no relief is given if the price is over £500,000.
4. Extra 3% on Second Properties
If you’re buying an additional house in Burnley or a rental property, you must pay an extra 3% on top of the regular SDLT rates. But, if you’re replacing your main house (even if you own another), the extra 3% doesn’t count.
5. Check for Exemptions and Reliefs
It’s always good to see if you qualify for Stamp Duty exemptions or reliefs, like the ‘mixed-use’ property relief for properties used for both living and business. There might be exemptions that surprise you!
In the end, Stamp Duty may seem tough, but it’s not. Understanding the basics, like rates, exemptions, reliefs, and the extra 3% charge on additional properties, makes it less stressful. As a Burnley real estate professional, I’m dedicated to helping you understand rules like this to make your property deals better. Every Burnley homeowner, whether a newbie, an investor, or anyone else, can use this info to make smarter decisions. Don’t forget, knowing is power, especially in real estate.