HOW MUCH STAMP DUTY WILL I HAVE TO PAY?
The issue of STAMP DUTY on property sales is highly contentious and adds a huge cost to buying a property in the UK. The level of stamp duty has remained the same now for many years and successive Governments have not allowed this unpopular property tax to keep pace with the increase of property prices over the years and in doing so more and more buyers who now pay over £250,000 for a property fall into the higher levels of tax payable. You can see by the tables below how Stamp Duty is calculated.
Stamp duty is payable on property purchases in the UK and is paid by the purchaser on completion of the transaction. Stamp duty is paid as a percentage of the final selling price. There are 6 different price bands where Stamp Duty kicks in. Please see the list below. HMCE inspects records relating to all property sales completions in the UK and they take this information from Land Registry records. They pay particular attention to the completions that happen around £250,000, £500,000, £1 Million and £2 Million price bands.
UK STAMP DUTY FOR RESIDENTIAL PROPERTIES
£0 - £125,000 = 0%
£125,001 to £250,000 = 1%
£250,001 to £500,000 = 3%
£500,001 to £1 Million = 4%
£1 Million to £2 Million = 5%
Over £2 Million = 7%
Over £2 Million bought by corporate bodies = 15%
Figures taken from the Stamp Duty land tax rates at GOV.UK https:/www.gov.uk
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