What is a stamp duty ? Let’s say I have a stamp duty of £5k. What does it mean? I have to pay £5k every month for the house I bought?
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Stamp Duty (also known as Stamp Duty Land Tax or SDLT) in England & Wales is a tax based on the value of land and property that you purchase.
It doesn’t mean that you pay £5k a month. It just means a single charge of £5k is payable on that purchase, based as a percentage of the total sale price. The Stamp Duty should be handled for you if you’re using a Solicitor or Estate Agent.
Also, any further purchases of land and property that you make will take into account the value of all the land/property that you own when calculating the rate on all future purchases.
The rates are:
|PURCHASE PRICE|RATE ON MAIN RESIDENCE|RATE FOR ADDITIONAL PROPERTIES|
|:-|:-|:-|
|Up to £125,000 (£300,000 for first-time buyers)|0%|3%|
|£125,0001 – £250,000|2%|3%|
|£250,001 – £925,000|5%|5%|
|£925,001 – £1,500,000|10%|13%|
|£1,500,001 +|12%|15%|
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