subject: 4 Ways To Avoid Stamp Duty [print this page] 4 Ways To Avoid Stamp Duty 4 Ways To Avoid Stamp Duty
Stamp Duty Land Tax, more commonly known as Stamp Duty, is a charge levied by the Land Registry against all purchases of UK property. It is a legal requirement that the buyer pays the stamp duty on any properties unless they are proven to be exempt. Exemption can be difficult to prove but there are a number of ways in which you could avoid stamp duty payments altogether or, at the very least, pay a reduced amount.
1 House Prices
You can avoid stamp duty payments if the property you purchase costs less than 125,000. This rate has dropped since the government cut backs as it was previously 175,000.
2 Disadvantaged Areas
If you purchase a property in an area that is deemed a disadvantaged region by the government, and therefore in need of redevelopment, then the lower limit is raised to 150,000. If the property costs less than this figure then you do not need to pay any stamp duty whatsoever. With the lower rate of stamp duty being equivalent to 1% of the property value this could mean a saving of up to 1,500.
3 First Time Buyers
First time buyers also receive a higher limit. They are entitled to purchase a house with a value of up to 250,000 and avoid stamp duty payments. If two people are purchasing the property together, then both parties must be first time buyers so neither must have purchased a home before.
4 Zero Carbon Emission Homes
Prove that the property you purchase has zero carbon emissions or that you can create your own energy for 12 months and you stand to avoid stamp duty altogether if the property was purchased for less than 500,000. If the property cost more than this then you will receive a rebate of 15,000.
Avoid Stamp Duty
Negotiating on the property not only saves you the money that is dropped in the purchase price but it may also save you thousands of pounds in stamp duty. You can effectively and legally avoid stamp duty by negotiating the price of a new property down even by a little. There are also many other reasons that individuals, companies, organisations, and local authorities can avoid stamp duty levies.
