If you are buying a property then part of the cost to purchase could include Stamp Duty. Stamp Duty is a tax paid to the government upon purchase of a property or land. Stamp Duty is charged at different rates dependent on purchase price, use (ie residential or non residential)
We will be able to give you advice about the amount of Stamp Duty due on completion of your purchase.
If you own a second property then there is a possibility that you may pay a higher rate of tax. If you do own a second property you will need to call us to discuss and we will establish whether the higher rates will apply.
Stamp Duty rates payable on the purchase of residential property are illustrated in the table below:
||Additional Property *|
|* Higher stamp duty rates for additional property from April 2016.|
** For additional property the first £40k will attract 0% tax. From £40k to £125K the rate will be 3% on full purchase price.
|less than £125k
|£125k to £250k
|£250k to £925k
|£925k to £1.5m
|rest over £1.5m
For all property transactions completing before April 2016 no SDLT will be paid on the first £125,000. Between £125,000 and £250,000 buyers will pay 2% within this band, 5% on the portion between £250,000 and £925,000, 10% within the next band up to £1.5 million and 12% over that. For additional property, such as buy to let or second homes, there will a 3% surcharge applied to all bands from 1st April 2016.
When is stamp duty paid?
This is paid upon completion. We will collect this money from you before completion. The government requires Stamp Duty to be paid within 30 days of completion or there will be a fine.
For further information please do not hesitate to contact one of the Conveyancing Team