How Much Is Stamp Duty
The government sets the stamp duty rates, and they cannot be avoided. See this website and the table of rates to understand the costs.
These are fixed rates that you must pay when you buy a property. Your solicitor will deduct the stamp duty rates when your account has been finalized. What rates are you willing to pay?
This table includes a number of different sorts of rates; however, people are mainly curious about the stamp duty land tax that applies to residential properties.
• Stamp duty land tax (SDLT) applies to residential properties
• SDLT applies to disadvantaged areas
• SDLT is required on new residential leasehold purchases
• SDLT is also required on properties deemed non-residential or mixed use
• Information About Stamp Duty on Sales of Shares
Stamp Duty Land Tax for Residential Properties: The majority of people who buy a second property must pay this tax. Generally speaking, the buyer will pay the tax through their lawyer; however, there are some seller who pay the tax as an inclusion of your sales agreement.
Your percentage will depend upon how much you sell your property for. It is currently only payable at the time of sale, and the value must be higher than £125,000. Here are the numbers for the current rates:
• For amounts up to £125,000 – 0%
• For amounts greater than £125,000 to £250,000 – 1%
• For amounts higher than £250,000 to £500,000 – 3%
• For amounts more than £500,000 – 4%
Commencing March 25, 2010 the first-time-buyers threshold has been increased to £250,000. This means that a 0% stamp duty paid for homes valued as high as £250,000 applies to first-time-buyers exclusively. This will continue until December 31, 2011.
Commencing in April 2010, a 5% rate applies to homes that are valued at more than £1,000,000. You must understand that the stamp duty rate you see here must be paid on the total amount. It is not divided according to the percentage. You will receive 3% of a £260,000 sale.
That’s why it’s very important to pay close attention to the charges and costs associated with a property. The SDLT will be given in one lump payment, against the total price. Therefore, it’s not possible for a person to claim that it’s £125,000, £200,000 & £250,000. In this situation, the purchaser would land on a dividing line of £575,000, so the SDLT rate would be 4%.
In this instance, the buyer would have to pay the government of the United Kingdom £28,750 SDLT for Disadvantaged Areas. The disadvantaged areas rates in the United Kingdom are exactly the same as those stated above. The only difference is that the 1% rate begins at £150,000 rather than at the standard £125,000.
