Stamp duty is a type of tax that is levied on the purchase of a property. The rates and thresholds can change, so it is important to check for the most up-to-date information before buying a home.
What are the current rates in England?
For residential properties, you won’t pay anything on properties up to the value of £250,000. From £250,001 to £925,000, you will pay 5 per cent, and buying properties for between £925,001 and £1.5m will cost you 10 per cent in stamp duty. Properties above £1.5m will see a duty of 12 per cent. The tax applies when purchasing a freehold, leasehold or shared ownership property for over £250,000 in England and Northern Ireland. A separate tax applies in Scotland and Wales.
How is stamp duty paid?
Your conveyancing solicitor will take care of the paperwork; alternatively, if you wish to do this yourself, the UK government website explains the step-by-step process. If you are planning to purchase a property, conveyancing solicitors Guildford are on hand to advise. Professionals such as https://www.samconveyancing.co.uk/Conveyancing-Solicitors/conveyancing-solicitors-guildford can take care of conveyancing during the buying process.
Do first-time buyers have to pay stamp duty?
First-time buyers are eligible for a reduced rate of stamp duty or may even be exempt. This reduced rate applies to properties below a certain value. New buyers to the market won’t pay any stamp duty on the first £425,000. According to The Week, the chancellor of the exchequer is rumoured to be considering a stamp duty cut to boost the UK’s property market.
Can stamp duty be added to a mortgage?
Yes, some buyers prefer to add the stamp tax amount to their mortgage if affordability checks allow this. You should always speak to a mortgage professional and ensure you leave adequate time.