What is it and how much is it going to cost me?
Stamp duty land tax is a tax everyone has to pay to the government when purchasing property or land in the UK.
How do I pay it?
Your solicitor will usually handle the payment of stamp duty. You have 30 days from the date of completion to pay. It is legally your responsibility to ensure stamp duty is paid.
How much will I have to pay?
Stamp Duty Land Tax is arranged in bands but is also tiered, so you will pay a different rate on different portions of the property value.
If you complete on your new home before you have sold your existing home, you will be required to pay the higher stamp duty of an additional 3%. If you sell your original property within 3 years of buying your new one however, you will be able to claim this back.
|Up to £125,000||0%|
|Above £125,000 and up to £250,000||2%|
|Above £250,000 and up to £925,000||5%|
|Above £925,000 and up to £1,500,000||10%|
Buy to Let or Second Home Stamp Duty
When anyone purchases a second property, be it a second home or a buy to let property you will have to pay an additional 3% stamp duty on each tier.
Who is exempt from Buy to Let stamp duty?
If you are married or in a civil partnership and either partner owns another property you will be liable even if you currently do not own any properties and this is your first purchase.
If a company buys a property the same rules apply.
If the purchase price is under £40,000 there is no stamp duty due.
Caravans, mobile homes and houseboats are also exempt.