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Tax - Stamp Duty
What is Stamp Duty Land Tax?
Stamp Duty Land Tax is currently payable on all purchases of land or property in the UK valued over £125,000. This applies to freehold and leasehold properties. The rate you pay depends on the value of the property, whether you are a first-time buyer, and in some cases the area in which the property is located.
If you are liable for Stamp Duty Land Tax, it is paid directly to HMRC. In many cases the solicitor who is handling the purchase will deal with the Stamp Duty, although it remains your responsibility to ensure it is paid.
In most cases, on purchases from £125,001 to £250,000, 1% Stamp Duty is payable on the whole transaction.
- On purchases from £250,001 to £500,000, 3% Stamp Duty is payable
- On purchases from £500,001 to £1,000,000, 4% Stamp Duty is payable
- On purchases over £1,000,001, 5% Stamp Duty is payable
- On purchases over £2,000,000, 7% Stamp Duty is payable
In every case, the whole Stamp Duty rate is payable on the entire transaction.
Different rates apply for first-time buyers, for all buyers in certain areas classified as ‘disadvantaged’, and for ‘zero-carbon’ homes. If you are a first-time buyer, no Stamp Duty is payable on purchases up to £250,000. For purchases over this amount, the usual rates of Stamp Duty apply.
For More Information See ...
- contact HMRC, www.hmrc.gov.uk