Stamp Duty: Everything You Need To Know
If you’re considering buying a house, it’s important to factor in costs like stamp duty.
If you’re considering buying a house, it’s important to factor in costs like stamp duty.
When you buy a property, you’ll usually pay tax on it. In England & Northern Ireland, this tax is known as stamp duty. Here’s everything you need to know.
Please note that there is currently a stamp duty holiday (see more information below), which has changed the rules on stamp duty. Ordinarily, though, only homes below £125,000 and first-time buyers spending up to £300,000 are exempt from paying stamp duty.
Stamp duty is calculated according to the cost of the property and whether you’re purchasing it as your main, or an additional, home. You can use a stamp duty calculator to work out how much stamp duty you’ll need to pay.
You will have 14 days from the date of completion (when all the contracts are signed and dated, and you get the keys) to pay stamp duty. If you take any longer than that, you could face a fine and additional interest on top. Your solicitor will probably sort this out and make sure you pay the bill, but it’s important to note that it is your legal responsibility to make sure your stamp duty is paid.
During the stamp duty holiday, anyone buying a home as their main residence and paying up to £500,000 won’t have to pay stamp duty. The stamp duty holiday is set to end on 31st March 2021, after which time the usual stamp duty rules will apply.
Under the current scheme, stamp duty is calculated as follows:
| Property value | Stamp duty |
| Up to £500,000 | 0% |
| The next £425,000 - £500,001 - £925,000 | 5% |
| The next £575,000 - £925,001 - £1.5million | 10% |
| The remaining - Above £1.5million | 12% |
Looking for your dream new build home? Morrish Homes has a variety of homes for sale on beautiful developments across the South, including Poundbury in Dorset, Oakwood in Somerset, and Nansledan in Cornwall.
