Published On: Mon, Aug 19th, 2019

Stamp Duty: Sajid Javid DENIES plans for shift to sellers but says ‘bold measures’ needed | Personal Finance | Finance

Yesterday, Chancellor of the Exchequer Sajid Javid has said that he would not support shifting SDLT to sellers. Writing on Twitter, Mr Javid penned: “More speculation about stamp duty this morning. To be clear, I never said to @thetimes I was planning to put it on sellers, and I wouldn’t support that. I know from @mhclg that we need bold measures on housing – but this isn’t one of them.”

It came after the Times reported on Saturday that the Chancellor may have been considering the idea.

When asked about a proposed tax change to make sellers liable for SDLT rather than buyers, he reportedly said: “I’m looking at various options.

“I’m a low-tax guy. I want to see simpler taxes.”

Currently, Stamp Duty Land Tax may be payable on increasing portions of the value of residential property which is greater than the £125,000.

However, if the buyer is purchasing their first home, and the price of the purchase is less than £500,000, then they may be able to claim a discount.

This means that the tax does not to be paid up to £300,000, and then at a five per cent rate on the portion from £300,001 to £500,000.

This applies provided that the property price is £500,000 or less, that all of the purchasers are first-time buyers, and the purchase is completed on or after November 22, 2017.

In the Budget 2018, the now-former Chancellor of the Exchequer Phillip Hammond announced an extension of the First Time Buyers relief to include all first time buyers of shared ownership properties up to the value of £500,000.

This relief is retrospective to the last Budget, meaning those eligible who had already paid the SDLT for a shared ownership property between November 22 2017 and October 29 2018 may apply for a refund.

For those who have bought a home before, the portion of a property up to the value £125,000 has the SDLT rate of zero.

READ MORE: Can Stamp Duty be delayed? Homeowners could face penalty if they miss the HMRC deadline

The next £125,000 – ranging from £125,001 to £250,000 – is charged at a SDLT rate of two per cent.

The next £675,000, so the portion from £250,001 to £925,000, has a five per cent SDLT rate.

Should the purchase price range between £925,001 up to £1.5 million, a 10 per cent rate will be charged on this £575,000 portion.

The remaining amount, which means the portion about £1.5 million, has a 12 per cent SDLT rate.

READ MORE: Stamp Duty Land Tax: Who pays stamp duty? Why you might not need to pay SDLT

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