fbpx

Why it pays to know about Stamp Duty

Why it pays to know about Stamp Duty
Stamp Duty/ Land and Buildings Transaction Tax (LBTT)

Stamp Duty/ Land and Buildings Transaction Tax (LBTT) can be a complicated added expense for purchasers to calculate due to the different rates that apply to different purchase types. Here’s a guide to help you understand the Stamp Duty/LBTT you will need to pay-

Current Homeowner or owned a property before-

  • For up to £145,000 of the property price you don’t need to pay stamp duty
  • £145,001 – £250,000 the rate you pay is 2%
  • £250,001- £325,000 the rate is 5%
  • £325,000-£750,000 the rate is 10%
  • £750,000 and above the rate is 12%

First Time Buyers-

  • For up to £175,000 of the property price you do not need to pay stamp duty
  • Anything above £175,000 you only pay Stamp duty on the excess at the standard rate.
  • To qualify as a First Time Buyer, you must have never owned, inherited or part-owned a property before.

Buy-To-Lets & Second Home Properties-

  • Properties purchased as a second home or a Buy to Let investment will incur an additional 3% Stamp Duty surcharge if the property costs over £40,000.

Please be aware that Stamp Duty rates vary between Scotland, England, Wales & Northern Ireland therefore it is important to seek advice from your Solicitor when purchasing a property.

Your home may be repossessed if you do not keep up repayments on your mortgage.There may be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances. The fee is up to 1% but a typical fee is 0.3% of the amount borrowed.