How much could you save?
Stamp Duty rates are expensive but can be avoided
18 September 2011
If you live in the UK, you may be able to avoid stamp duty land tax (SDLT) on your next property purchase. Stamp duty mitigation may be able to drastically reduce or eliminate the amount of SDLT you owe. The specific amount you can save through stamp duty avoidance depends on a number of factors but some people are able to save thousands of pounds on a single property purchase. For buyers purchasing property worth over 1 million pounds, they are sometimes able to save as much as 25,000 pounds on the purchase of the property! Clearly, SDLT mitigation is worth a try.
Not all properties qualify for SDLT mitigation, but there are tax experts available who can help folks determine if there are any ways for them to reduce or totally avoid stamp duty. For first time home buyers, they may be able to completely avoid stamp duty rates for properties purchased before March 2012. Additionally, there are thresholds based on the purchase price of the home which determine how much SDLT a buyer is subject to, based upon a percentage of the worth of the property.
Be forewarned that a common way of lowering or eliminating stamp duty rates is to claim more for fittings and fixtures than was actually paid in order to get the purchase price of a property under one of the thresholds. This is not a valid way to avoid stamp duty and if you are determined to have done this, you may be subject to penalties.
When it comes to SDLT, the best way to try to avoid it is to talk to a tax professional. They know the intricate ins and outs of stamp duty rates and they can help people purchasing property to stay on the legal side of tax avoidance.
Potential Stamp Duty exemptions include purchasing property in a redeveloped area, property which has zero carbon emissions, property which is self-sufficient (energy wise), and more. When it comes to “green” exemptions such as zero carbon footprint and self-sufficiency, the burden of proof is clearly in the hands of the purchaser. A stamp duty rates expert can help people navigate the difficult paperwork involved in proving eligibility for a SDLT exemption.
Stamp Duty Mitigation tax professionals generally charge a fee based on a percentage of the total amount of stamp duty rates avoidance. For example, if they are able to save a customer 5000 pounds in SDLT fees, their fee may be 40%. In this example, that would be 2000 pounds. This may seem steep but given the alternative of actually paying 5000 pounds in stamp duty rates, paying 2000 pounds is clearly a more pleasant alternative.
If you are considering purchasing a private home or a business property in the United Kingdom, and that property is worth close to 250,000 pounds or more, be sure to check into your SDLT Mitigation options before you complete the deal. In today’s tough economic times, avoiding SDLT is a great way to make the most out of your money. Stamp Duty Rates can help, so fill in our contact form today and an adviser will call you back.