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THE EDUCATION SECTIONDecember 2017With the change to Stamp Duty Land Tax (SDLT) for 1st time buyers (FTB) in the November 2017 Budget,we thought it a good time to detail who pays what and how much, when a property is purchased.What is SDLT? Stamp Duty Land Tax (SDLT) is charged on the purchase of property or land over a certain price in England, Wales and Northern Ireland. The tax, often referred to simply as Stamp Duty, has existed in various forms since the 1690s.The current SDLT threshold is £125,000 for residential properties and £150,000 for non-residential land and properties.SDLT no longer applies in Scotland. Instead it is referred to as Land and Buildings Transaction Tax.Who pays what? That depends if you are a 1st time buyer, just moving home or buying a 2nd property - whether as a holiday home or to let out as a Buy to Let (B2L).What is the amount of tax to pay? Referring to the section above, you can guess that the amount of SDLT to pay depends not only on the circumstances under which you are buying the property, but also on the value. These are the main bands for standard residential purposes -•Up to £125,000Zero•The next £125,000 (the portion from £125,001 to £250,000) 2%•The next £675,000 (the portion from £250,001 to £925,000)5%•The next £575,000 (the portion from £925,001 to £1.5 million)10%•The remaining amount (the portion above £1.5 million)12%Higher rates for additional properties. You will usually have to pay 3% on top of the normal SDLT rates if buying a new residential property means you will own more than one. You will not pay the extra 3% SDLT if the property you are buying is replacing your main residence and that has already been sold. However, if there is a delay selling your main residence and it has not been sold on the day you complete your new purchase:•you will have to pay higher rates because you own 2 properties•you may be able to get a refund if you sell your previous main home within 36 monthsTo help with any SDLT calculation, Hector and his crew at HMRC have designed a very useful calculator to work things out for you. Just click HERE and you will be taken to that website.As always, please do not hesitate to contact us if you would like further details or information.