When you buy a house you’ll probably be aware that it some cases you may need to pay Stamp Duty Land Tax (SDLT), but how much will you need to pay?
The new way of calculating Stamp Duty Land Tax works very similarly to the way that Income Tax is calculated. Stamp Duty is payable at each rate on the portion of the purchase that falls within each band, rather than at a single rate on the whole transaction which is how it used to be calculated before the recent reform.
Stamp Duty Land Tax is only payable when you buy a property or land over a certain price in England, Wales and Northern Ireland. The current SDLT threshold is £125,000 for residential properties and £150,000 for non-residential land and properties.
For Residential Properties, the following is payable:
Up to £125,000 – Zero
The next £125,000 (the portion from £125,001 to £250,000) – 2%
The next £675,000 (the portion from £250,001 to £925,000) – 5%
The next £575,000 (the portion from £925,001 to £1.5 million) – 10%
The remaining amount (the portion above £1.5 million) -12%
Under new laws that have come into force you’ll usually also have to pay 3% on top of the normal SDLT rates if buying a new residential property means you’ll own more than one.
So if you’re looking for help and advice on Stamp Duty or you’re looking for a mortgage and would like advice why not contact us to see if we can help? We’re Mortgage Specialists and we operate from the Derby area, we’re more than happy to see you in your own home, work place or our offices. Give us a call today and see how My Finance Friend can help you with your mortgage and new home plans.