Stamp Duty

Stamp Duty Land Tax is a fee charged by the government when you buy a home in England and Wales for more than £125,000.  The charge payable is broken down into ‘band rates’ determined by the value of the property you purchase.

Stamp Duty rates were changed in December 2014 to make them much fairer and overall cheaper for most. Under the new rules, you will only pay the band rate for the value of the property that falls within that band – just like the 10%, 20% and 40% you pay in income tax on different elements of your salary.  With this tax you pay nothing on the first £125,000 of the overall value, then 2% on anything between £125,001 and £250,000, 5% on anything between £250,001 and £500,000 and so on. (See below example and current rates table for England and Wales).

Example:

STAMP DUTY INFOGRAPHIC

 

Current rates:

PURCHASE PRICE STAMP DUTY RATE – ON THAT PORTION OF THE PURCHASE PRICE
Up to £125,000 0%
£125,000.01 – £250,000 2%
£250,000.01 – £925,000 5%
£925,000.01 – £1,500,000 10%
£1,500,000.01 + 12%
Correct from 4 December 2014

 

If you are buying a second home or a buy to let property there is an additional 3% charge on each band rate. Don’t forget, you can offset the additional 3% charge against Capital Gains Tax liability when you sell. To learn more, speak to one of our Sales Teams who can put you in touch with an Independent Financial Advisor.

How do you pay your stamp duty?

The most important thing to remember is that in England and Wales, Stamp Duty must be paid within 30 days of legal completion.  Should you miss this deadline you may face fines.  In most cases, your solicitor will probably factor this into your purchase process. However, it’s legally your responsibility to ensure your stamp duty is paid.

You currently have JavaScript disabled. This site requires JavaScript to be enabled and some functions of the site may not be usable or may not look correct until JavaScript is enabled.