You could save thousands, thanks to Stamp Duty changes
The Government have announced changes to Stamp Duty which mean you could save thousands when you move to a spacious, brand-new home.
Stamp Duty is the tax charged by the Government when you buy a home of more than £250,000 (previously £125,000).
What do the changes mean for you?
- The Government has reformed Stamp Duty by doubling the level at which people begin paying this, from £125,000 to £250,000.
- In addition, they have increased the level at which first time buyers start paying Stamp Duty from £300,000 to £425,000.
- These measures will reduce Stamp Duty costs for all movers by up to £2,500, with first time buyers able to access savings of up to £11,250^.
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.
The transfer of funds to pay the Stamp Duty will be managed for you by your solicitor.
How much is Stamp Duty?
Following the Government announcement on 23rd September 2022, there is no Stamp Duty to pay on the first £250,000 when you buy a home, then the following rates apply:
|
Purchase Price |
Stamp Duty % |
|
£0 to £250,000 |
0% (Zero) |
|
£250,001 to £925,000 |
5% |
|
£925,001 to £1,500,000 |
10% |
|
Over £1,500,000 |
12% |
What if I'm a first time buyer?
Following the Government announcement on 23rd September 2022, if you're a first time buyer, purchasing a home up to £625,000 (previously £500,000), the following rates apply:
|
Purchase Price |
Stamp Duty % |
|
£0 to £425,000 |
0% (Zero) |
|
£425,001 to £625,000 |
5% |
Note: For properties priced over £625,000, no additional first time buyer relief is available. See existing homeowner rates.
What if I'm an investor or own more than one property?
If you are buying an investment property or an additional home, the following rates will apply to your purchase:
|
Purchase Price |
Stamp Duty % |
|
£0 to £125,000 |
3% |
|
£125,001 to £250,000 |
5% |
|
£250,001 to £925,000 |
8% |
|
£925,001 to £1,500,000 |
13% |
|
Over £1,500,000 |
15% |
Buying in Scotland and Wales
See more detail on LBTT (Scotland)
(Terms and conditions apply)
Stamp Duty in Wales is referred to as the Land Transaction Tax (LTT) and is charged when you buy a home of more than £180,000.
Stamp Duty FAQs
-
Yes, stamp duty is payable on a new build property, just like any other property purchase.
-
It depends on the lender, but some may allow you to add stamp duty to your mortgage, although this will increase your overall mortgage payments and interest charges.
-
Stamp duty is not applicable to properties priced below £250,000, and first-time buyers are exempted from paying this tax on properties priced below £425,000. There are also other circumstances where you may be exempt.
-
As of September 2022, the current stamp duty rates in for residential property purchases are:
- Up to £250,000: 0%
- £250,001 to £925,000: 5%
- £925,001 to £1.5 million: 10%
- Above £1.5 million: 12%
First-time buyers are exempt from paying stamp duty on properties up to £425,000 and pay a reduced rate on properties up to £625,000.
^Figure based on a first time buyer purchasing a property worth £543,500.
