So, you have found your perfect property and it’s within your budget, but you now need to work out if you need to pay stamp duty and if so how much is it going to cost you.
Stamp duty is a tax that has to be paid when you are buying property within the UK, however it can vary depending upon what part of the UK you are buying in.
The amount of stamp duty that is paid to the government will depend on what part of the UK you are in and what the price of the property you are purchasing is.
Stamp duty (SDLT) applies if the property is over £125,000. This tax is also applicable to overseas buyers.
Since 4th December 2014, you only pay the rate of tax on the part of the property price within each tax band.
From April 2016, an additional 3% stamp duty must be paid on second homes and buy-to-let properties. From November 2017, first-time buyers will pay zero stamp duty on the first £300,000 of any home costing up to £500,000 (and only 5% on any proportion between £300k and £500k).
From July 8th 2020, a ‘stamp duty holiday’ was announced aimed at helping buyers whose finances were affected by Covid and boosting a property market hit by lockdown. See further details below.
Stamp Duty payments are paid to the HMRC and has to be completed within 30 days of the date of your purchase completion or you could risk being fined. Usually your solicitor will take care of this for you when purchasing your property.
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