'Stamp Duty' or 'Stamp Duty Land Tax' SDLT as it's now properly known is a tax charged on land and property transactions in the UK.
Stamp Duty is charged at different rates and has different thresholds for different types of property and different values of transaction.
How is it calculated?
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Purchase Price
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Stamp Duty Rate
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Up to £125,000
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0%
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Over £125,000 to £250,000
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1% (0% first time buyer)
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Over £250,000 to £500,000
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3%
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Over £500,000
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4%
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So, for example, if the purchase price of your new Barratt home is £295,995, your Stamp Duty bill would add a hefty £8,880 to your moving costs.
Where did it come from?
Stamp Duty is an ancient tax, first introduced in the UK in 1694 during the reign of William and Mary to raise money for the war against France. At first it was a tax, or duty, on documents that required the Royal seal (or stamp) to be legally valid - documents like the transfer of ownership of land.
The 'Stamp Duty Land Tax' (SDLT) was introduced in 2003 and largely replaced Stamp Duty with effect from 1 December 2003.
Why do we have to pay it?
When you buy a property, the change in land ownership has to be legally registered at the Land Registry. This process requires a certificate from the HMRC - which they will only issue on receipt of the SDLT due on the purchase of the property. So, if you don't pay the Stamp Duty, you can't buy your new home. Just like it was 400 years ago.
Luckily, you don't have to worry about it: that's one of the things your solicitor takes care of.
How can we pay it for you?
Legally, the purchaser has to pay the SDLT on their purchase. However we may be able to pay the Stamp Duty for you - just ask the Sales Adviser at the development. Should you proceed with Barratt Homes' offer, we will send a cheque to your solicitor on completion of the purchase of your new home.
Click to read more on the Stamp Duty Paid offer.