What is stamp duty?
It’s a government tax paid on the purchase of all properties in the UK currently over £125,000
The rate of stamp duty tax you pay depends on the value of the property
From the date of completion on a property, you have 30 days to pay, but this is typically organised by your solicitor. To understand the entire buying process click here.
Stamp duty for first-time buyers was wiped in 2017 meaning…
- Those purchasing a property of up to £300,000 will no longer need to pay the tax (£500,000 in London)
- Stamp duty for properties valued between £300,000 and £500,000 will be charged at the standard 5%. For example, if the property is worth £400,000 the first £300,000 will be stamp duty-free but 5% will be charged on the remaining £100,000
Current coronavirus changes to stamp duty…
Due to Coronavirus, the government has issued a reduction on stamp duty for properties purchased between from 8 July 2020 until 31 March 2021.
- Up to £500,000 = No stamp duty is currently required
- For properties between £500,001 to £925,000 = Only 5% is required (for that £425,000 portion)
- For properties between £925,001 to £1.5 million = 10% stamp duty is required (for that £575,000 portion)
- £1.5 million = 12% stamp duty is required for the remaining amount (the amount above £1.5m)
For those with additional dwelling, there is an additional 3% on top of the above. A breakdown of the split here.