Stamp Duty

What is it? Why do I have to pay it and how much will it cost me?

Stamp Duty is a mandatory tax charged by the government when buying a new home. The rate you pay will be solely dependant the value of your property and is only payable on houses over the value of £125,000.


How is it calculated?

Changes are continually been made on stamp duty and most recent changes saw the calculation of stamp duty being based on a sliding scale rate meaning you only pay for the proportion of the property that’s at that rate rather than whole of the propery at a fixed rate. These changes mean that for the large majority of people, stamp duty will be cheaper. 

For Example
If you purchase a property at £325,000 you will pay nothing for the first £125,000 of that, 2% for £125,000 (taking you to £250,000) and 5% for the remaining £75,000. This means your stamp duty will be (£0 + £2,500 + £3,250 = £6,250)

What happens if you don’t pay Stamp Duty?

Put simply – you will not be able to purchase your new home. Stamp Duty is required to obtain a certificate from the HMRC – which is needed to legally change the ownership of land. Your solicitor will calculate your stamp duty and usually charge it within your conveyance fee. In the meantime, try a stamp duty calculator to see how much you will need to pay.


Stamp Duty Rates


Purchase Price                             Amount Payable

Up to £125,000                                          0
£125,001 to £250,000                               2%
£250,000 to £925,000                               5%
£925,001 to £1,500,000                            10%
£1,500,000 and over                                  12%

Publish date: 18/10/2017