How is it calculated?
|Purchase Price||Stamp Duty Rate
|Up to £125,000
|Over £125,000 to £250,000
|Over £250,000 to £500,000
|Over £500,000 to £1 million
|Over £1 million to £2 million
|Over £2 million from 22 March 2012
So if you choose a property that’s worth £200,000 the Stamp Duty you pay would be £2,000.
Where did it come from?
It’s 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. Initially, 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 Stamp Duty due on the purchase of the property. So, put simply, if you don't pay the Stamp Duty, you can't buy your new home. Luckily, you don't have to worry about it as it’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.
We could pay your stamp duty