Stamp Duty
Stamp Duty is the tax charged by the Government when you buy a home.
What is Stamp Duty?
For first-time buyers in England no Stamp Duty is payable on properties up to £300,000. Existing homeowners need to start paying Stamp Duty from £125,000.
Stamp Duty in Scotland is now referred to as the Land and Buildings Transaction Tax (LBTT) and is charged when you buy a home of more than £145,000, or £175,000 if you are a first-time buyer.
See more detail on LBTT (Scotland)
Stamp Duty in Wales is now referred to as the Land Transaction Tax (LTT) and is charged when you buy a home of more than £180,000.
Why do we have to pay it?
When you buy a property the change in land ownership has to be legally registered at the Land Registry. This process requires a certificate from the HMRC – which they will only issue on receipt of the Stamp Duty due on the purchase of the property. So, put simply, if you don't pay the Stamp Duty, you can't buy your new home. The transfer of funds to pay the Stamp Duty will be managed for you by your solicitor.
How much is Stamp Duty?
In England, Stamp Duty rates are paid on a sliding scale based on the property price within each tax band, and whether you're a first-time buyer or an existing homeowner.
Stamp Duty payable for England - First-time buyers:
|
Purchase Price |
Stamp Duty % |
|
£0 - £300,000 |
0% (Zero) |
|
£300,001 to £500,000 |
5% (£0 Stamp Duty to pay up to £300,000) |
|
£500,001 - £925,000 |
5% |
|
£925,001 - £1.5 million |
10% |
|
More than £1.5 million |
12% |
Stamp Duty payable for England - Existing Homeowners:
|
Purchase Price |
Stamp Duty % |
|
0 – £125,000 |
0% (Zero) |
|
£125,001 to £250,000 |
2% |
|
£250,001 to £925,000 |
5% |
|
£925,001 to £1.5 million |
10% |
|
More than £1.5 million |
12% |
Buyers of additional residential properties, such as second homes and buy-to-let properties, will have to pay higher rates (3%) in Stamp Duty on top of the current rates for each band.
How could we pay it for you?
Legally, when purchasing a home, the purchaser has to pay the Stamp Duty land tax on their purchase. However, on selected plots, we may be able to make a contribution towards your Stamp Duty - just ask the Sales Adviser at the development.
Should you proceed with this offer, your solicitor will deduct the agreed contribution from the purchase price that is paid to us and allocate it to the Stamp Duty payment on completion of the purchase of your new home.
For more details just ask one of our Sales Advisers at any of our developments.
