Stamp duty land tax (SDLT) is a sum of money that must be paid when an individual purchases a property or a piece of land for a certain amount of money.
The quantity of money required for stamp duty depends upon the overall price of the property.
It is also contingent on the type of property you are purchasing; whether it is residential, it is non-residential, mixed-use or whether you are a first-time buyer.
Stamp duty land tax applies to properties in England and Northern Ireland. In Scotland, Land and Buildings Transaction Tax must be paid on purchased properties or land, while in Wales a Land Transaction Tax must be paid for sales that were completed on or after 1 April 2018.
A stamp duty land tax return must be sent to HM Revenue & Customs within 14 days of completion on a property or land, otherwise you may be charged penalties and interest.
For people who have bought a property before, a new threshold of ?500,000 would cut the cost of purchasing a ?238,000 home by ?2,260, while individuals buying properties worth half a million pounds or more could save ?15,000.
Helen Miller, deputy director of the Institute for Fiscal Studies, said the government “really should be keeping tight-lipped about these things”.
“If you are thinking about buying a house and there is the prospect of cutting your tax bill by ?15,000 in a few months’ time, in most cases you are going to think it is worth waiting,” Ms Miller said.
“It would be better to wait and see if you need this fiscal stimulus before you enact it, and it’s a really bad idea to pre-announce it or trail it, because people will just delay. If the chancellor wants to do it, he has to announce it and say it’s happening now.”