Stamp Duty Explained – What is Stamp Duty?

Stamp Duty is a government tax that buyers must pay on property and land. This tax is only paid on residential properties/ land over £125,000, or £150,000 for non-residential land and properties in England Northern Ireland and Wales.
The rate that you pay increases with the value of the property or land.
Updates made to Stamp Duty means that first time buyers (England, Northern Ireland and Wales) will not have to pay stamp duty on anything worth up to £300,000.

Additionally, if you buy a property costing £500,000, the stamp duty rate will be 5%. This means that you would not be charged for the first £300,000 and you will only have to pay for the remaining £200,000.
However, once the land or property exceeds the cost of £500,000 then you will receive the standard rates of stamp duty.

Stamp Duty Rates are as follows:

For first time buyers:

Property Value up to £300,000 – 0%
Property value up to £500,000 – 5% (The first 300,000 is still 0%. So it is 5% of £200,000)
Property value above £500,00 – 5%
Property value above £925.001 – 10%
Property value over £1.5 million – 12%

Standard Rates:
These rates apply if you are not a first time buyer.
£0 – £125,000 – 0%
£125,001 – £250,000 – 2%
£250,001 – £925,000 – 5%
£925,001 – £1.5 million – 10%
£1.5m+ – 12%

Remember: These rates change again if you are buying a second home, or live in Scotland and in some cases, is not payable. The system is not straight forward, so we can keep you well informed on how much stamp duty you may be eligible to pay based on your situation.

What Next?

If you're a first time buyer, then government-backed schemes can be very helpful to get a better deal on your mortgage. Help to Buy Basics The Help to Buy scheme…


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