When you buy a residential property such as a new home you will have to pay stamp duty, a tax to transfer the ownership of the property. Stamp duty is another part of buying a house you need to be aware of and make sure you know how much you have to pay.

 

How much do I pay?

How much stamp duty tax you pay is dependent on the price of the property. Any property under £250,000 is exempt from paying any stamp duty.

Property worth £250,001 - £925,000 there will be a 5% stamp duty charge.

Properties worth £925,000 - £5.1m will have a 10% stamp duty charge.

Those over £1.5m will have a 12% stamp duty charge.

For first time buyers the threshold is £425,000 before having to pay any Stamp Duty, which the conservative party have pledged to maintain If they will the 2024 election.

 

How to pay stamp duty

Stamp duty is a tax which pays for the transfer of ownership of a property and is paid to HM Revenue and customs. You can pay this yourself by submitting a return form or it could be included in your solicitor fees if so, they will do this for you. If you do not pay or you don’t submit your form on time (within 14 days) then you will have to pay penalties with interest.

Stamp duty is tax which goes to the government to be included in their budget which covers sectors such as, transport, roads, police, health and the emergency services.