News
More good news as Stamp Duty is cut until 31 March
Stamp duty - tax on buying land or properties - is being temporarily cut in England and Northern Ireland.
With immediate effect, until 31 March it will only be charged on properties costing £500,000 or more.
Previously stamp duty was charged on properties costing £125,000 or more, except for first-time buyers, who paid nothing up to £300,000 and then a reduced rate up to £500,000.
So this will be a tax cut for first-time buyers looking for property over £300,000 and other buyers going for anything over £125,000 (there are different rules for people buying second homes).
Figures from Zoopla suggest that at the moment 16% of sales in England were exempt from stamp duty last year, which would have been been 89% if anything up to £500,000 had been considered.
About stamp duty
- It’s a tax payable on buying a property. The rules vary across the UK.
- In England and Northern Ireland buyers pay Stamp Duty Land Tax.
- Scotland have Land and Buildings Transaction Tax, in Wales buyers pay Land Transaction Tax.
- The amount paid depends on where you are in the UK, the price of the property and whether you're a first-time buyer.
England and Northern Ireland:
- Stamp duty is payable on land or property sold for £125,000 or more.
- First-time buyers pay no tax up to £300,000 and 5% on any portion between £300,000 and £500,000.
- If you’ve bought a home before, stamp duty rates are 2% on £125,001-£250,000, 5% on £250,001-£925,000, 10% on £925,001-£1.5m, and 12% on any value above £1.5m.Spending £248,000 (the average cost of a house) would currently cost £2,460 to move home.
- Landlords pay an extra 3% stamp duty when purchasing a buy-to-let property in England and Northern Ireland.
Scotland and Wales
- Scotland: Land and Buildings Transaction Tax is 2% on £145,001-£250,000, 5% on £250,001-£325,000, 10% on £325,001-£750,000, and 12% on values above £750,000.
- Scottish landlords pay an extra 4% Land and Buildings Transaction Tax on top of standard rates.
- Wales: Land Transaction Tax is 3.5% on £180,001-£250,000, 5% on £250,001-£400,000, 7.5% on £400,001-£750,000, 10% on £750,001-£1.5m, and 12% on values above £1.5m.
- Welsh landlords pay an extra 3% Land Transaction Tax on top of standard rates.
