Stamp Duty

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:

Residential Non- Residential Rate
£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.