Stamp Duty is the tax you pay when you buy property or shares. You pay 'Stamp Duty Land Tax' (SDLT) when you buy property and either 'Stamp Duty' or 'Stamp Duty Reserve Tax' when you buy shares.
Stamp Duty Land Tax when you buy property
New thresholds were introduced from September 2008 which meant that no stamp duty would be charged on residential property if the purchase price was £175,000 or less. This was to encourage first time buyers and the Council of Mortgage Lenders confirmed that a third of new buyers avoided paying SDLT. From 1st January 2010, however, the threshold will revert to £125,000 so any residential property purchased for over £125,000 will attract SDLT. The rates of SDLT payable from 1 January 2010 are shown below:
|
Residential property - purchase price |
Rate of Stamp Duty Land Tax |
|
up to £125,000 |
0% |
|
£125,001 - £250,000 |
1% |
|
£250,001 - £500,000 |
3% |
|
£500,001 or more |
4% |
If you have any queries regarding this, please contact our Property team on 01639 645061. |
