Stamp Duty Explained: A Guide from Estate Agents in Truro

Stamp Duty Land Tax (SDLT) is one of the most important costs to consider when buying a property in Cornwall. Whether you are purchasing a main residence in Truro, moving within the city, or investing elsewhere in the county, understanding stamp duty is essential.

As experienced estate agents in Truro, Philip Martin regularly advises buyers on the full costs of purchasing property. This guide explains how stamp duty works, what you may need to pay, and how it can affect your buying decisions in Truro and across Cornwall.

What Is Stamp Duty?

Stamp Duty Land Tax is a tax paid to HM Revenue & Customs when purchasing property or land above a certain price threshold in England and Northern Ireland. The amount payable depends on the purchase price, whether the property will be your main residence, and your circumstances as a buyer.

Stamp duty is usually paid within 14 days of completion, with your solicitor or conveyancer calculating and submitting the payment as part of the legal process.

Current Stamp Duty Rates

Stamp duty is charged on a tiered basis, meaning you only pay the relevant rate on the portion of the purchase price that falls within each band.

For buyers purchasing a main residence, current standard rates are:

• Up to £250,000 – 0%

• £250,001 to £925,000 – 5%

• £925,001 to £1.5 million – 10%

• Over £1.5 million – 12%

With property prices in Truro often exceeding regional averages, our estate agents always recommend factoring stamp duty into your budget at an early stage.

Stamp Duty for First-Time Buyers in Truro

First-time buyers purchasing their first home in Truro may benefit from reduced stamp duty, helping to make getting onto the property ladder more achievable.

Eligible first-time buyers currently pay:

• No stamp duty on properties up to £425,000

• 5% on the portion between £425,001 and £625,000

If the purchase price exceeds £625,000, standard rates apply to the full amount. To qualify, buyers must never have owned a property anywhere in the world.

Buying an Additional Property in Truro and Cornwall

Cornwall remains a popular location for second homes, holiday lets, and buy-to-let investments, particularly in and around Truro. If you are purchasing an additional property, an extra 3% stamp duty surcharge applies on top of the standard rates.

Example:
If you purchase an additional property in Truro for £400,000, the stamp duty would be calculated as follows:

• 3% on the first £250,000 = £7,500

• 8% on the remaining £150,000 = £12,000

Total stamp duty payable: £19,500

This higher cost can significantly affect affordability and returns, which is why experienced estate agents in Truro will always advise factoring stamp duty into your financial planning.

Claiming Back Stamp Duty on an Additional Property

In certain circumstances, buyers who pay the higher stamp duty rates may be able to reclaim the 3% surcharge.

This commonly applies when a buyer purchases a new main residence in Truro before selling their existing home elsewhere. At completion, the purchase is treated as an additional property and higher rates apply.

If the former main residence is sold within three years of completing the new purchase, the buyer may be eligible to reclaim the surcharge paid.

Refund claims must usually be submitted within:

• 12 months of selling the previous main residence, or

• 12 months of the stamp duty return filing date, whichever is later.

Professional legal or tax advice is recommended, as strict conditions apply.

Are There Any Exemptions or Reliefs?

Some transactions may qualify for stamp duty relief or exemption, including:

• Transfers of property following divorce or separation

• Certain shared ownership purchases

• Specific corporate or trust arrangements

Stamp duty rules can be complex, and advice from solicitors and experienced estate agents in Truro is strongly recommended.

Planning Ahead with Estate Agents in Truro

Stamp duty can have a meaningful impact on affordability, particularly in Truro’s most desirable residential areas. Understanding your potential liability early allows you to budget accurately, negotiate confidently, and avoid unexpected costs at completion.

At Philip Martin, our Truro estate agents work closely with trusted solicitors and financial professionals to ensure buyers are fully informed throughout the purchasing process.

Stamp Duty FAQs for Truro Buyers

How much stamp duty will I pay when buying in Truro?
The amount depends on the purchase price and your circumstances as a buyer, including whether the property is your main residence or an additional home.

When do I have to pay stamp duty?
Stamp duty must usually be paid within 14 days of completion, and your solicitor will normally manage this for you.

Do first-time buyers in Truro pay stamp duty?
Many first-time buyers benefit from stamp duty relief, including paying no stamp duty on properties up to £425,000, subject to eligibility.

What is the stamp duty surcharge on second homes in Truro?
Second homes and buy-to-let properties are typically subject to a 3% surcharge on top of standard stamp duty rates.

Can I reclaim stamp duty on an additional property?
Yes, in certain circumstances. If you buy a new main residence before selling your existing home, you may be able to reclaim the surcharge once the original property is sold within the permitted timeframe.

Speak to Our Estate Agents in Truro

Whether you are buying your first home, moving within Truro, or considering a property investment, our experienced team is here to provide clear, professional guidance at every stage.

If you would like tailored advice on stamp duty or the Truro property market, please don’t hesitate to get in touch with Philip Martin – trusted estate agents in Truro.