Stamp Duty is a tax you might have to pay if you buy a residential property or a piece of land in England. If you’re buying your main property up until 30th June 2021, you will not have to pay Stamp Duty on properties costing up to £500,000. This will apply whether you’re a first-time buyer or have previously owned a property. Fro the 1st July to the 30th September, this exemption figure will reduce to £250,000.
Properties costing more than £500,000 (£250,000 from 1st July) will pay the Stamp Duty rate based on the value of the property over £500,000 (£250,000 from 1st July).
If you’re buying a second home, you’ll still pay Stamp Duty on a property costing more than £40,000 at the revised rates – paying an extra 3% surcharge on the full price.
This tax applies to both freehold and leasehold properties – whether you’re buying outright or with a mortgage.
There are three rates of stamp duty land tax which could be applicable to the purchase of a property and are dependent on your circumstances.
If you are a first time buyer, then there no stamp duty to be paid on the first £300,000 of the purchase price of a property valued below £500,000.
If you are buying a property as a second home or investment, or you are retaining your current property whilst purchasing a new principal residence, you will be liable for a stamp duty surcharge of 3%. In the latter circumstance, the stamp duty surcharge payment is refundable if the property you have retained is sold within three years of your purchase date.
For more information, please visit: Money Advice Service