When you are buying a property, there are various taxes and charges to consider. One of the most important is stamp duty land tax (SDLT). In this post, we will look at how you can claim for an SDLT exemption. You can find out more about the various exemptions that exist in our post here.

Claiming as a first-time buyer

In order to make a claim, the buyer must submit a Land Transaction Return to HMRC within 30 days of completion.

Typically your solicitor will complete this return and make claims on the same day you complete the purchase. If you don’t have a solicitor or want to do this yourself the Land Transaction Return can be filled in using the HMRC online form, when filling out the return you must enter Code 32 in the reliefs field on the form.

If you have already submitted your return, then you can make an amendment by including a note that you are claiming the SDLT exemption.

Receiving exemption without filing a claim

There are multiple reasons for being exempt from SDLT, some of these you don’t have to fill out a form. 

Reasons include: receiving property in a will, if you receive property through divorce or civil partnership dissolution or if no payment is exchanged for property.

If your leasehold property purchase is less than 7 years long if the cost is below the chargeable consideration rate which is currently £125,000 for residential properties.

If the lease is for more than 7 years you are exempt providing the premium is less than £40,000 and its annual rent is below £1000.

Get help with your claim

SDLT can be confusing and difficult to deal with. The team at Cap Ex tax are experts and are here to help you and will make sure you get your full entitlement of relief and exemptions.

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