How much stamp duty will I need to pay?
Ah stamp duty – everyone’s favourite tax. It’s our little gift to the Government on top of all the other myriad fees and expenses involved in buying a home.
Like it or not, if you are currently purchasing a property you will most likely need to pay stamp duty. The amount you pay will vary depending on the purchase price of the property, and also whether this is your primary residential home, 2nd home or a buy to let property, so it is worth being aware of how much you will pay.
Stamp Duty dates back to the 17th century, when all legal documents were taxed. Officials would stamp the documents to show that the tax had been paid, hence the strange name. In 2014, there was a complete overhaul of the Stamp Duty system announced in the Chancellor’s Autumn Statement, and in 2016, there was a further overhaul of the system specifically for buy to let properties.
If you are purchasing a property of under £125,000 and it is intended as your sole residence, there is no stamp duty to pay – happy days – and good news for those trying to get on the first rung of the property ladder, or those who are on a modest budget. If however you are purchasing a property under £125,000 and it is intended to be used as a second home or buy to let property, you will have to pay Stamp Duty at 3% of the purchase price.
If you are purchasing a property between £125,000 and £250,000 and it is your sole residential property, your stamp duty will be charged at 2% of the sale price, but this rises to 5% if the property is your second home, or a buy to let. The % of Stamp Duty paid increases in stages along with the purchase price.
The link below will take you to a table which sets out the full range of Stamp Duty fees for both sole residential properties and buy-to-let/second homes. If you need any further help and advice about buying or selling homes, why not get in touch? We’d be very happy to help.