First time buyers make sure you have set aside enough to cover your stamp duty.
Stamp Duty Land Tax, commonly referred to as stamp duty, is a tax that you pay when you buy land or property over a certain value – the threshold currently stands at £125,000 for residential properties and £150,000 for property or land which is non-residential – for example, business premises. You must pay this tax when you buy a freehold property, buy a leasehold (whether it’s new or already existing), when you buy a property through shared ownership, or if you transfer a property and take on the mortgage.
The tax must be paid within 30 days of completion – your solicitor or conveyancer will usually do this for you and add it to their fees.
Stamp duty for residential property is payable on a rising scale as follows:
Up to £125,000: zero
The next £125,000 (up to £250,000): 2%
The next £675,000 (up to £925,000): 5%
The next £575,000 (up to £1.5m): 10%
The remaining amount (over £1.5m): 12%
