First time buyers make sure you have set aside enough to cover your stamp duty. Stamp Duty Land...
First time buyers make sure you have set aside enough to cover your stamp duty.
Stamp Duty Land Tax, commonly referred to as stamp duty, is a tax that you pay when you buy land or property over a certain value – the threshold currently stands at £125,000 for residential properties and £150,000 for property or land which is non-residential – for example, business premises. You must pay this tax when you buy a freehold property, buy a leasehold (whether it’s new or already existing), when you buy a property through shared ownership, or if you transfer a property and take on the mortgage.
The tax must be paid within 30 days of completion – your solicitor or conveyancer will usually do this for you and add it to their fees.
Stamp duty for residential property is payable on a rising scale as follows:
Up to £125,000: zero
The next £125,000 (up to £250,000): 2%
The next £675,000 (up to £925,000): 5%
The next £575,000 (up to £1.5m): 10%
The remaining amount (over £1.5m): 12%