How much Stamp Duty will I have to pay when I purchase a property? Is it different if I am buying a second or buy to let property?
When you purchase a property you usually will have to pay a tax called 'Stamp Duty'. The amount of stamp duty you have to pay depends on the cost of the property, and since 1st April 2016 it also depends on whether it will be your only property or you are buying it as a second home or buy to let property. To calculate the amount of stamp duty you will pay you can refer to our Stamp Duty Calculator found on the right hand side of this page.
A standard residential buyer will pay no stamp duty on a property costing up to £125,000, 2% on the portion from £125,000- £250,000, 5% between £250,000 and £925,000 and 10% between £925,000 and £1,500,000. 12% stamp duty will be due on any property costing more than £1.5 million. These rates apply if this is the only property you will own.
From the 1st April 2016 there will be a stamp duty increase of 3% for landlords or those purchasing a property as a second home. This means that for a standard residential buyer purchasing a property for £175,000 they will owe £1000 stamp duty- but if it is being bought as an additional property then the stamp duty would rise to £5000.
In the event of briefly owning more than one property i.e you buy a new home whilst you are still in the process of selling your old one, you will have to pay the higher rate of stamp duty but a refund can be claimed within 36 months.
For more information about stamp duty please visit the Gov.uk Stamp Duty Rates
29th March 2016
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