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Conveyancing and Property LawStamp Duty

Stamp Duty

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Advice on land tax

Stamp duty land tax is the government tax paid on property and land purchases over £125,000 (or £250,000 for first-time buyers).

The amount of stamp duty is decided on a sliding scale of differing thresholds. Please see the tables below to determine how much tax would be payable on your future home.

The administration of the stamp duty land tax is usually taken care of by whomever is carrying out the conveyancing for your move – usually a solicitor or licensed conveyancer.

Current stamp duty rates

Stamp duty land tax on residential land or property - freehold or leasehold

Purchase price/lease premium or transfer value

Stamp duty rate

Stamp duty rate for first-time buyers

Up to £125,000

Zero

Zero

Over £125,000 to £250,000

1%

Zero

Over £250,000 to £500,000

3%

3%

Over £500,000

4%

4%

Source: HMRC

So, for example, a house worth £275,000 would fall into the 3% threshold, meaning you’d have to pay £8250 in stamp duty land tax.

Stamp duty land tax on residential land or property in disadvantaged areas

Purchase price/lease premium or transfer value

Stamp duty rate

Stamp duty rate for first-time buyers

Up to £150,000

Zero

Zero

Over £150,000 to £250,000

1%

Zero

Over £250,000 to £500,000

3%

3%

Over £500,000

4%

4%

Source: HMRC

You can find out if a property lies within a disadvantaged area and is therefore entitled to stamp duty land tax relief by going to the HMRC website.

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