stamp duty tariffs（Stamp Duty A Guide to Tariffs）
Stamp Duty: A Guide to Tariffs
When purchasing a property in the UK, there are a number of costs to consider, including legal fees, surveys and insurances. One of the most significant costs, however, is the stamp duty tax. In this article, we will outline the stamp duty tariffs and guide you through the amounts payable.
What is Stamp Duty?
Stamp duty is a tax levied by the UK government on the purchase of a property or land. The amount of stamp duty payable is based on the purchase price of the property or land. The tax is paid to HM Revenue and Customs (HMRC) within 14 days of completion.
What are the Stamp Duty Tariffs?
The stamp duty tariffs are divided into bands, with properties falling into one of these bands based on their purchase price. The following table outlines the current stamp duty tariffs:
| Purchase Price | Stamp Duty Rate |
|---|---|
| Up to £125,000 | 0% |
| £125,001 to £250,000 | 2% |
| £250,001 to £925,000 | 5% |
| £925,001 to £1.5 million | 10% |
| Above £1.5 million | 12% |
It's worth noting that first-time buyers are exempt from paying stamp duty on properties below £300,000, and on the first £300,000 of properties worth up to £500,000. This exemption only applies to individuals who have never owned a property before, or who have not owned a property for 3 years or more.
How is Stamp Duty Calculated?
To calculate the amount of stamp duty payable, simply multiply the purchase price of the property by the relevant stamp duty rate. For example, if you are purchasing a property for £350,000, the stamp duty payable will be calculated as follows:
- No stamp duty is payable on the first £125,000 of the purchase price (£0)
- 2% is payable on the amount between £125,001 and £250,000 (£2,500)
- 5% is payable on the amount between £250,001 and £350,000 (£5,000)
- The total amount of stamp duty payable is therefore £7,500
In conclusion, stamp duty can significantly increase the cost of purchasing a property. Therefore, it is important to factor this cost into your budget when considering your options. By understanding the stamp duty tariffs and how they are calculated, you'll be better equipped to plan for this expense and ensure that it doesn't come as a surprise.
