How Much Stamp Duty will I Pay?

If you’re in the process of purchasing a property or moving house you’ll probably want to know how much, if any, stamp duty you’ll be required to pay.

 

Since December 2014, after the Chancellor George Osborne’s change in the way Stamp Duty Land Tax was applied, the system now operates by a graduated rate, similar to that of Income Tax.

 

Prior to the changes Stamp Duty Land Tax was based on the price that you paid for the property and the Stamp Duty percentage was applied to the whole value.

 

This meant that a house selling for just over a particular threshold could cost the house buyer a lot more tax.

 

The rates now stand as below;

 

Price Band:

 

£0-£125,000 – 0%
£125,001-£250,000 – 2%
£250,001-£925,000 – 5%
£925,001-£1.5m – 10%
£1.5M + – £12%

 

So for example, if Mr and Mrs Smith buy a home for £150,000, they’ll pay no tax on the first £125,000, but they’ll pay 2% on the £25,000 over the threshold. Therefore, they will pay £500 Stamp Duty.

 

In the Budget of 2017, the Chancellor Phillip Hammond announced that Stamp Duty for First Time Buyers on properties worth up to £300,000 wouldn’t apply. It was expected that as a result, 80% of First-Time Buyers.

 

The rates now stand as below for First Time Buyers;

 

Price Band:

 

£0-£300,000 – 0%
£300,001-£500,000 – 5%
£500,001-£925,000 – 5%
£925,001-£1.5m – 10%
£1.5M + – £12%

If you’re interested in moving house, or buying your first home, then why not speak to our mortgage adviser and find out how much you could borrow? Our Mortgage Adviser can find the right deal for you and find the perfect mortgage for your needs. Give us a call today on 03333 44 85 11 or email enquiries@onlinemortgagecalculators.co.uk