What is Stamp Duty?
Stamp Duty is a government land tax in England, that applies to all property purchases over a certain price.
The amount of Stamp Duty Tax you pay is dependent on the price of the property you are choosing to purchase. The tax also applies to both freehold and leasehold purchases.
How much will I pay?
As of 23
rd September, Chancellor Kwasi Kwarteng announced that the rates of Stamp Duty payable to the government have been decreased.
The minimum cost of a property on which buyers pay stamp duty in England has been doubled from £125,000 to £250,000. For first-time buyers, figures have also increased from £300,000 to £425,000.
What are the new tax rates compared to the previous ones?
What if I’m a first-time buyer?
Following the government announcement, Stamp Duty Tax has also changed for first-time
buyers. Previously, purchasing your first home would come with a 0% stamp duty for
purchases made up to £300,000. However, now this threshold has been increased to
£425,000.
How do I pay stamp duty?
You are given 14 days after your completion date to file a Stamp Duty Land Tax return to HMRC and pay any amount that is due.
This can be done by yourself however, your solicitor usually calculates your amount and pays it on your behalf. In most cases your solicitor will arrange to pay this on your completion day, after collecting this money from you in advance.