Stamp Duty

R

ragazza

Guest
Hi,

when does stamp duty apply on a property?
I know the cut-off is E317k, but sometimes stamp duty seems to be waived on new properties which cost more than that, or if the person is a first time buyer.

Thanks,
R.
 
Any new property under 125sqm is exempt from stamp duty a for first time buyer. The E317K threshold is on second hand peoperties for first time buyers. See .
 
Thanks ClubMan. That OASIS article is very informative.

One other question - If you are a first time buyer, but dont plan to live in the house, do the same rates of Stamp Duty apply?

Thanks.
 
No - in that case you are not an owner occupier but an investor so owner occupier benefits (e.g. reduced rates of stamp duty, owner occupier mortgage interest tax relief, CGT exemption on eventual resale etc.) do not apply and the normal treatment pertains. Note that some people might question the wisdom of a first time buyer buying an investment property as their first property purchase.
 
That clears it up, thanks ClubMan.

(The reason why I was thinking of buying an investment property as my first property, is because I live abroad, but hope to come back in the next year or so.
Judging from the above, it may be better to wait until I am back before buying).
 
Do you own a property abroad? If so then you will not be a first time buyer here anyway.

Judging from the above, it may be better to wait until I am back before buying).

You need to ascertain this based on your own circumstances and requirements. I'm just answering the specific questions and giving my non expert opinion.
 
No, I dont own abroad.

Yes, I'll weigh up the pros and cons of both options..
Thanks for the help!
 
So if im a first time buyer and my house is more than 125 Sq mts I still pay stamp duty even if its under the 317K limit, ie the limit doesnt apply to new houses
 
In the case of a FTB of a new house over 125sqm the following treatment set out on OASIS applies:

If the area of the house or flat is greater than 125 sq. metres (1,346 sq. feet), some stamp duty is payable if the Chargeable Consideration is above the relevant exemption threshold. (The stamp duty is assessed on either the cost of the site or 25% of the cost of the site plus the building costs (less VAT), whichever is the greater figure. This figure is called the Chargeable Consideration.
Click to expand...
 
I find the following calculator very handy:
[broken link removed]
ajapale
 
Hi,

Does the same exemtpion apply for buying you second house under the the same floor area. Also if you bought you first house as an investment are you classed as a first time buyer for your first PPR.

Any help would be appreciated
 
***warning***
there is actually an issue/error with the stamp duty calculator. if it is a new house you should divide the purchase price by 1.135 to remove the VAT and input that figure instead. the calculator does not do this for you.
 
I was adviced by a solicitor that when buying a site you pay your stamp duty due and thats it. No stamp duty payable on cost of building etc. Is this right
 
yes, but the rates are much higher for sites than for finished houses and you would also be liable for the county development levies which vary from county to county. so you may or may not make a saving
 
Here's another question relating to this.

Suppose you buy a property as a First Time buyer, are an owner occupier and are exempt from stamp duty. If you then move out of the house within 5 years and begin renting it out. Are you obliged to pay the full stamp duty?
 
If you then move out of the house within 5 years and begin renting it out. Are you obliged to pay the full stamp duty?

As far as I know yes. If you rent it out after five years have elapsed then you don't.
 
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