Posted on

New stamp duty regulations

Stamp duty

New stamp duty regulations

What is stamp duty?

Stamp duty land tax is a lump-sum tax that anyone buying a property or land costing more than a set amount has to pay upon completion of their purchase.

New rules for first time buyers

The new stamp duty rates for first-time buyers buying properties for up to £500,000 are as follows:

  • Up to £300,000 purchase price: 0% stamp duty
  • £300,000.01 to £500,000: 5% (on the difference above £300,000.01)

If you buy a first home costing more than £500,000, you won’t benefit from any change, and will be buying under the standard system.

Who counts as a first time buyer?

A first time buyer is anyone who has never bought or inherited a property. If you are buying a property with someone who has owned or inherited a property before, you will have to pay stamp duty, even if you are a first time buyer.

All other property purchases:

Purchase price of propertyStamp DutyBuy to Let/ Additional Home
£0 – £125,0000%3%
£125,001 – £250,0002%5%
£250,001 – £925,0005%8%
£925,001 – £1,500,00010%13%

If you would have any questions in relation to the new stamp duty regulations, give us a call at Coppenwall Estate Agents.