It doesn’t seem that long ago that the Government introduced a Stamp Duty holiday and many canny buyers took advantage of this and saved many thousands of pounds. Today, the rates are very different and we would always recommend that these costs should be taken into consideration when buying and selling property.
Stamp duty originated in the 17th century when duty stamps could be purchased and attached to a transactional document to prove that any tax due on the transaction had been paid. Today, tax relating to the purchase of land is known as “Stamp Duty”, or, more correctly Stamp Duty Land Tax (SDLT).
There has in the past been some confusion as to whether the rate bands are applied once on the whole amount or incremental, i.e., escalating rates on successive portions. The latter is the case, and for the sake of clarity the following is the current banding table for most residential properties in England, Wales and Northern Ireland:
For home movers
For first-time buyers
If you are a first-time buyer, you can claim a relief. However, if the price is over £625,000 then the same rates as people who have bought a home before apply.
For second homes
If you’re buying a second home in England or Northern Ireland, you’ll essentially pay a 3% surcharge on each of the stamp duty tiers. Here are the rates.
The above will cover most situations, but there are certain exceptions and reliefs, so it’s worth taking professional advice in relation to your own specific situation. Please feel free to call us if you’d like to discuss.
Dartford office: t) 01322 228090 e) dartford@livermores.co.uk
Crayford office: t) 01322 550777 e) crayford@livermores.co.uk