Do I need to pay Stamp Duty?

1 minute, 17 seconds Read

As part of the house purchase process in the United Kingdom, most, if not all, properties are subject to stamp duty land tax.  This is a final form of taxation that occurs before sales can be completed.  In the past, previous governments have either frozen or suspended completely the paying of stamp duty land tax.  This has been done to try and stimulate the housing market.  However, if the government stops this tax, it represents a significant loss on the country’s tax revenue.  It is not a given that you have to pay stamp duty land tax.  There are specific criteria that can see you exempt or receive a refund.

Image credit

For example, one of the most well-known exceptions is when you are a first-time buyer.  If two people are part of the purchase process and one of them is a first-time buyer, this exemption is still retained even if the other person has bought several properties already.  The second exemption is the threshold for stamp duty land tax.

Image credit

At present levels, if you purchase a property below £125,000, then you will not pay stamp duty land tax.  Above this and rates start to rise, and percentages come into effect. You will pay 2% on every part of £125,000 until you reach £625,000. After this amount, the rate increases further to 5%  per £250,000. This percentage becomes 10% and 12% as the price of the property increases.  The more expensive property, the more tax you will pay. A Stamp Duty Refund might be available with the help of

Similar Posts

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.