You must pay Stamp Duty Land Tax (SDLT) on any residential property where the purchase price is over £125,000.
|Property or lease premium or transfer value||SDLT rate|
|Up to £125,000||Zero|
|The next £125,000 (the portion from £125,001 to £250,000)||2%|
|The next £675,000 (the portion from £250,001 to £925,000)||5%|
|The next £575,000 (the portion from £925,001 to £1.5 million)||10%|
|The remaining amount (the portion above £1.5 million)||12%|
If you buy a property for £280,000, the SDLT you owe is calculated as follows:
0% on the first £125,000 = £0
2% on the next £125,000 = £2,500
5% on the final £30,000 = £1,500
Total SDLT = £4,000
From April 1st 2016, if you are purchasing a property that you will be renting out, often known as a 'Buy to Let' property, Stamp Duty will be calculated at 3% over the standard rates. This rate will also apply to the purchase of 'second homes', and any purchase where an individual owns two or more properties at the end of the transaction and has not replaced their main residence.
Further details can be found in the Stamp Duty Land Tax section of the gov.uk website.
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