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Do I pay stamp duty on property bought in the auction or online auction?

Asked on Apr 22 2010, House Prices in Tonypandy | Report content

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  • You will be liable for stamp duty if the purchase price is above £125,000 and you are not a first time buyer. These are the thresholds for stamp duty, 0% up to £125,000, £125,001 - £250,000 is 1% of the purchase price. £250,001 - £500,000 then it is 3% of the entire purchase price and £500,001 + it is 4%.

    Answered on Apr 23 2010, Report content
  • Tonypandy is in a "Disadvantaged area" so if that's where the property is Stamp duty Land Tax (SDLT) does not bite unless the consideration exceeds £150 000. There's a useful postcode locator and a tax calculator on the HMRC website but they don't work with Firefox so try them with Internet Explorer. If SDLT is likely to bite it may be possible to buy fixtures and fittings seperately to the house to reduce the purchase price of the latter: that needs discussion with your legal adviser.

    Answered on Apr 25 2010, Report content
  • I'm afraid that the stamp duty thresholds and therefore liabilities are exactly the same in the auction environment as via an estate agent.

    Answered on Apr 26 2010, Report content
  • As correctly stated by garethb1, it makes no difference that the purchase is via auction, the same rules apply on stamp duty, however if the purchase price is over £250k then you can reduce your bill by approximately half if you structure the purchase in a tax efficient way. Details in the link below

    Web reference:

    Answered on Apr 26 2010, Report content

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