Is Stamp Duty on Houses Always Necessary?

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When you are buying property anywhere in the United Kingdom, there is the assumption that you will have to pay stamp duty on houses that you buy. This is a unique duty that is charged to the buyer of the home or piece of property and, until recently, was always due in full at the time of the sale. However, there have been some significant changes in the laws on taxation since 2008 and there are now several very legitimate ways to get out of paying stamp duty on houses.

How Can You Avoid Paying Stamp Duty on Houses?

Here are just a few of the many examples of the people and the types of properties that are often exempt from stamp duty, but of course this depends on where you live:

1 – First time home buyers, the definition of which is fairly loose. Although, if you are a couple, both people must qualify.
2 – Homes that are equipped to provide their own energy (through solar or wind energy, for example) will often be fully exempt.
3 – Homes that are in a particular area that has been designated by the local or national government.
4 – Homes that require a great deal of work or have been previously abandoned.

How Much Is Stamp Duty?

Although the percentage may seem small – between 1% and 5% – keep in mind that the percent is based on the total sales price of your home, and that can add up to a lot of money. If you are buying a home that is in the neighborhood of 500,000 pounds, then 5% of that price is not small change.

One of the keys to remember about this tax is that a small difference in the price of your home can make all the difference in the percentage you will pay. For example, if the tax threshold is set at 500,000 pounds, then negotiating to buy that home at 499,999 instead would make a huge difference in what you would have to pay.

What About “Green” Homes?

If you are buying an environmentally-friendly home, then you may also get away without paying any stamp duty. There are very strict definitions on what a green home is, so checking with a stamp duty mitigation expert is one of the best things that you could do to ensure that you don’t pay more duty than you absolutely have to.

There are also other ways that you can reduce the stamp duty that you pay or make sure that you don’t pay anything at all, but because these rules are very complicated and always changing, you should talk to a stamp duty expert before you make any offer on a home. They may be able to give you advice as to where to buy a home, how much to pay, and what changes you might want to make to avoid paying this tax. The truth is that more and more people are able to avoid paying stamp duty and if you would like to get into the house of your dreams, then this is a duty that you certainly want to avoid paying.