Stamp duty

Stamp duty

Stamp duty land tax is a tax payable by the buyer.

The amount of tax is a percentage of the price. for residential properties the rates are:-

Price of property	Duty
£125,000 or less	Nil
Over £125,000 but not exceeding £250,000 *	1%
Over £250,000 but not exceeding £500,000	3%
Over £500,000 but not exceeding £1,000,000	4%
Over £1,000,000	5%

* Except first time buyers

There are special rules when a single transaction covers multiple properties but these are outside the scope of this publication.

No stamp duty land tax is payable on the purchase of domestic properties in what are called "disadvantged areas" if the price does not exceed £150,000. Disadvantaged areas are areas specified as such by the government. To check if a property is in a disadvantaged area, use the HMRC post code search tool. You will need the post code.

Note that for non-residential properties stamp duty land tax starts at £150,000, not £125,000 and that the maximum rate is 4%.

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Young & Pearce 58 Talbot Street Nottingham NG1 5GL 0115 959 8888 info@youngandpearce.com
Young & Pearce is a trading name of Sharp Young & Pearce LLP, a Limited Liability Partnership registered in England & Wales, partnership number OC363812. References to partners are references to members of Sharp Young & Pearce LLP. A list of members is available at our registered office - 6 Weekday Cross, Nottingham, NG1 2GF

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