Stamp Duty changes could save you thousands
The recently announced Stamp Duty changes from the Government mean you could save thousands when you move to an energy-efficient, brand-new home.
Stamp Duty is the tax charged by the Government when you buy a home, previously of more than £125,000, now £250,000.
What do the changes mean for you?
- The Government has reformed Stamp Duty by doubling the level at which people begin paying this, from £125,000 to £250,000.
- In addition, they have increased the level at which first time buyers start paying Stamp Duty from £300,000 to £425,000.
- These measures will reduce Stamp Duty costs for all movers by up to £2,500, with first time buyers able to access savings of up to £11,250^.
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.
The transfer of funds to pay the Stamp Duty will be managed for you by your solicitor.
How much is Stamp Duty?
Following the Government announcement on 23rd September 2022, there is no Stamp Duty to pay on the first £250,000 when you buy a home, then the following rates apply:
|
Purchase Price |
Stamp Duty % |
|
£0 to £250,000 |
0% (Zero) |
|
£250,001 to £925,000 |
5% |
|
£925,001 to £1,500,000 |
10% |
|
Over £1,500,000 |
12% |
What if I'm a first time buyer?
|
Purchase Price |
Stamp Duty % |
|
£0 to £425,000 |
0% (Zero) |
|
£425,001 to £625,000 |
5% |
Note: For properties priced over £625,000, no first time buyer relief is available.
What if I'm an investor or own more than one property?
If you are buying an investment property or an additional home, the following rates will apply to your purchase:
|
Purchase Price |
Stamp Duty % |
|
£0 to £125,000 |
3% |
|
£125,001 to £250,000 |
5% |
|
£250,001 to £925,000 |
8% |
|
£925,001 to £1,500,000 |
13% |
|
Over £1,500,000 |
15% |
Buying in Scotland and Wales
Stamp Duty in Scotland is referred to as the Land and Buildings Transaction Tax (LBTT) and is charged when you buy a home of more than £145,000.
See more detail on LBTT (Scotland)
Stamp Duty in Wales is referred to as the Land Transaction Tax (LTT) and is charged when you buy a home of more than £180,000.
Stamp Duty FAQs
-
Yes, stamp duty is a tax charged by the Government when you buy any home in the UK.
-
Stamp duty in Scotland is replaced by the Land and Buildings Transaction Tax (LBTT).
-
Properties that are priced below £250,000 are exempted from stamp duty, and first-time buyers are also not required to pay this tax on properties that are priced below £425,000.
-
As of September 2022, the stamp duty rules in the UK are as follows:
- No stamp duty is payable on properties up to £250,000.
- From £250,001 to £925,000, a 5% stamp duty rate is applied.
- From £925,001 to £1.5 million, a 10% stamp duty rate is applied.
- Above £1.5 million, a 12% stamp duty rate is applied.
First-time buyers are exempt from paying stamp duty on properties up to £425,000 and pay a reduced rate on properties up to £625,000.
^Figure based on a first time buyer purchasing a property worth £543,500.
