Stamp duty land tax is an unavoidable tax you must pay when purchasing property, where the purchase price is £125,000 or more. The rates charged increase at fixed property value points:
|£125,000 or less||£150,000 or less||Nil|
|£125,001 – £250,000||£150,001 – £250,000||1%*|
|£250,001 – £500,000||£250,001 – 500,000||3%|
|over £500,000||over £500,000||4%|
*0% for first time buyers of residential property.
For instance, you are buying a house with a purchase price of £200,000, so you fall into the lowest rate bracket.
There are some exceptions. If you are buying a property in a disadvantaged area, you will not pay any Stamp Duty on a property priced at £150,000 or less. If you are a first time buyer you do not pay any stamp duty unless the property value exceeds £250,000.