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 |
