What is Stamp Duty?
When purchasing a property in the UK a charge is applied to that property dependent on its value. That charge is Stamp Duty (Stamp Duty Land Tax). There is no Stamp Duty to pay on homes up to the value of £250,000. The rate of Stamp Duty to pay on homes above the value of £250,000 is 5% and applies to the portion of the value between £250,001 and £925,000. The rate for the next £575,000 (the portion from £925,001 to £1.5 million) is 10%. An additional rate of 3% remains for buyers who already own residential properties, such as second homes and buy-to-let properties.
First Time Buyers in England pay no Stamp Duty on properties up to the value of £425,000.
For properties up to the value of £625,000, First Time Buyers pay no Stamp Duty on the first £425,000. Stamp Duty is then owed at the rate of 5% on the remaining amount, up to £200,000.
First Time Buyers purchasing homes above the value of £625,000 will need to pay the standard rates of Stamp Duty and do not qualify for first-time buyer’s relief.