Buying A House Or Flat

What is stamp duty?

What is stamp duty?

Stamp Duty Land Tax (SDLT) is a tax charged on the purchase of property. For residential property it is calculated on percentage of purchase price – four bands:

 

£1 - £125,000 = 0% rate

£125,001 – £250,000 = 1% rate

£250,001 - £500,000 = 3% rate

£500,001 upwards = 4%

 

If a property is in a disadvantaged area then the zero percent rate rises to £150,000.00.

 

The tax is calculated at one rate for the entire purchase price i.e. if you pay £250,001 then tax is calculated on the entire price at 3%

 Stamp duty is complex, and care should be taken, especially for complex transactions. You are responsible for payment of the correct amount even if you have an advisor. The tax is paid on completion. www.hmrc.gov.uk/so for further info

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