Types of stamp duty exemption
Stamp duty is the most unwelcome part of all purchases. Nonetheless, it is a burden that all homebuyers are forced to bear. However, several transactions are exempt from stamp duty. To avoid the stamp duty land tax most buyers seek the help of tax counselors and legal experts experienced in handling the stamp duty exemption and mitigation procedure.
Properties exempt from stamp duty
Properties in remote areas
You can claim stamp duty land tax relief by buying a house or property in a remote or disadvantaged area. People buying properties purely for residential use as well as for combining residential use with business are exempt from paying stamp duty as long as the value of the property is less than ₤150,000.
Multiple dwellings
You can claim stamp duty relief by purchasing multiple houses. Purchasers can enjoy significant stamp duty concession through this stamp duty mitigation process. The stamp duty that the buyer is required to pay is equivalent to the stamp duty rate on the value equal to the total amount paid for all the houses divided by the number of houses bought. For instance if you buy four houses for one million pound, instead of paying stamp duty charged on property worth a million pound, your stamp duty rate will be equivalent to the rate charged on ₤250,000.
Transfer property between same group companies
When the buyer and seller are companies belonging to the same groups, the buyer can seek stamp duty exemption.
Stamp duty exemption for eco friendly homes
To avoid stamp duty land tax, consider buying an eco friendly home. The UK government offers stamp duty relief to buyers who buy zero-carbon homes for the first time. However, to seek stamp duty relief, make sure that your environment friendly home is accredited by a recognized assessor. A zero-carbon home is one that uses zero emission cooking and heating methods. Zero-carbon homes priced up to ₤500,000 are exempt from stamp duty, whereas properties valued above ₤500,000 are eligible for up to ₤15,000 tax deduction.
Tax duty exemption for registered social landlords
Registered social landlords can seek stamp duty relief for purchases. To be eligible for the tax relief, most of the board members of the social landlord should be tenants of the property. The social landlord should purchase the property from the local council or any other qualifying body. In addition, the transaction should be financed by government subsidy.
Stamp duty relief for charities
When properties are bought for charitable purpose, the buyer can seek Stamp Duty exempt land tax relief.
If you want Avoiding Stamp Duty on purchases, Using a specialist tax planning approach can help to reduce the Stamp Duty exempt. Learn about the Stamp Duty Mitigation and see what people in and out of your professional network have to say about it.
Stamp Duty Mitigation: Solution for high stamp duty land tax
Every land and property worth more than ₤250,000 purchased in UK attracts a 3 percent stamp duty, known as Stamp Duty Land Tax. Stamp duty mitigation schemes can help you to avoid the tax. The duty exemption process is handled by expert tax counselors and solicitors who help clients to save a substantial amount of the tax while purchasing properties.
Benefits of stamp duty mitigation
When you make important purchases involving large amounts of money such as buying a house, you are required to pay a certain amount to the government in the form of stamp duty. The stamp duty is fixed as a percentage of the price of the house or the property that you purchase. In the last decade, the stamp duty rate has almost quadrupled forcing homebuyers to search for strategies to reduce the tax burden.
With escalating prices of properties, the amount of stamp duty tax that a property buyer needs to pay to the government is also increasing proportionately. To buy a property priced between ₤500,000 and ₤1,000,000, the buyer is required to pay 4 percent of the property’s value as stamp duty. Before 1997, purchases of similar value attracted only 1 per cent stamp duty. Stamp duty charged on properties priced above ₤1,000,000 is 5 percent of the value of the purchase. People buying properties valued between ₤250,000 and ₤500,000 are required to pay 3 percent of the property’s price as stamp duty to the government. Hence, it is obvious that most homebuyers already burdened by mortgage debts would look for ways to reduce the tax burden.
How to mitigate stamp duty
Fortunately, several types of purchases are exempt from stamp duty or attract lower stamp duty rates. Legal consultants experienced in tax planning are ready to provide professional assistance to homebuyers bothered by the high stamp duty rate. The consultants can help you with the taxation laws to ensure that the amount of tax you pay is within your means.
Stamp duty mitigation or exemption is not an offence. The legal consultants do not use unscrupulous methods to help you avoid the tax or reduce the burden of the stamp duty. Instead, by following the law of the land they guide homebuyers through the stamp duty mitigation process. For instance, if you buy an environment friendly house you may avoid the tax burden. Stamp Duty exempt land tax is usually not imposed on houses and properties located in remote areas.
If you want Avoiding Stamp Duty on purchases, Using a specialist tax planning approach can help to reduce the Stamp Duty exempt. Learn about the Stamp Duty Mitigation and see what people in and out of your professional network have to say about it.