When purchasing a property in the UK a charge is applied to that property, dependent on its value. That Charge is Stamp Duty (Stamp Duty Land Tax). The current Stamp Duty threshold starts at £125,000. The rate of Stamp Duty increases by 3% for buyers of additional residential properties, such as second homes and buy-to-let properties.
|Purchase price of property||Rate of Stamp Duty||Buy to Let/Additional Home Rate*|
|£0 - £125,000||0%||3%|
|£125,001 - £250,000||2%||5%|
|£250,001 - £925,000||5%||8%|
|£925,001 - £1.5 million||10%||13%|
|Over £1.5 million||12%||15%|
First-time buyers buying properties for between £300,000 and £500,000, won't have to pay stamp duty on the first £300,000. The excess between £300,000 and £500,000 will be charged at 5%. First-time buyers purchasing homes for more than £500,000 will have to pay stamp duty at the standard rates.
|Tax Band||%||Taxable Sum||Tax|
|less than £125k||0||£0||£0|
|£125k to £250k||2||£125,000||£2,500|
|£250k to £925k||5||£675,000||£33,750|
|£925k to £1.5m||10||£75,000||£7,500|
|rest over £1.5m||12||£0||£0|