Stamp Duty Explained
Stamp Duty Land Tax when you buy property
You pay Stamp Duty Land Tax on Property like houses, flats, other buildings and land. If the purchase price is £125,000 or less (effective 23 March 2006), you don’t pay any Stamp Duty Land Tax at all. If it’s more than £125,000, you pay between 1 and 4 per cent of the whole purchase price, on a sliding scale.
| Residential Purchase Price | Rate of Stamp Duty Land Tax |
| Up to £125,000 | 0 % |
| £125,001 - £250,000 | 1 % |
| £250,001 - £500,000 | 3 % |
| £500,001 or more | 4 % |
Property in disadvantaged areas
If you are buying a property in what are designated by the government as "disadvantaged areas" you do not pay any land tax on purchases under £150,000.
To check whether the property you are proposing to buy is in a qualifying area we recommend you check this with the HMRC Exempt Stamp Duty Qualifying Areas on their website and through your solicitor.
Use the Stamp Duty Tax Calculator on HMRC websiteMore information can be found on the HMRC website. We recommend that you check that these rates and guidelines have not been changed since this article was written by contacting the Her Majesty’s Revenue and Customs. The home page for Stamp Duty information can be located by clicking on this link.
More Useful Property Advice articles will be added here in due course. If you have any questions on property matters or proposals for advice articles, do not hesitate to write to us via the Contact Us page. |
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