Stamp Duty

Stamp duty is a tax payable to the government on the purchase of a property. Its full title is Stamp Duty Land Tax. In many parts of the country where property prices are lower, first time buyers are often spared the expense of stamp duty as the property prices fall below the threshold above which it is payable. Stamp duty is payable depending on the purchase price of the property:

0-£125,000 0% payable
£125,001-£250,000 1% payable
£250,001-£500,000 3% payable
Above £500,000 4% payable

The payment of the tax takes place at completion of sale/purchase and is transacted through the conveyancing solicitor. Stamp duty mostly affects first time buyers in London and the South East because of the lowest threshold but there are cases when exemptions are possible, typically in regeneration areas and sometimes in shared ownership schemes.

Some new house-builders will pay stamp duty for you as part of their incentive package.