What is Stamp Duty?
The Government has announced changes to Stamp Duty, which is great news for homebuyers as the threshold has been doubled to £250,000. Stamp Duty (SDLT) is a Government tax that's charged when you buy a property in England and Northern Ireland, but you'll only need to pay it when the price of that property reaches a certain threshold.
Does everyone need to pay it?
Yes, when you buy a new home, it has to be legally registered with the Land Registry. To do this they need a certificate from the HMRC, which they will only release once you've paid the Stamp Duty on a home over £250,000. Your solicitor will transfer the funds to pay the Stamp Duty.
|How much will you need to pay?||SDLT rate|
|Up to £250,000||Zero|
|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%|
Good news if you're a first-time buyer
You can claim a discount (relief) if the property you buy is your first home. This means you’ll pay:
- no SDLT up to £425,000
- 5% SDLT on the portion from £425,001 to £625,000
You’re eligible if you and anyone else you’re buying with are first-time buyers.
If the price is over £625,000, you can't claim the relief. Follow the rules for people who’ve bought a home before. More detailed information can be found here on the Government's website.
What if I own more than one home?
You’ll usually have to pay 3% on top of SDLT rates if buying a new residential property means you’ll own more than one.
You may not have to pay the higher rates if you exchanged contracts before 26 November 2015.
How much could I have to pay?
Use the HM Revenue and Customs (HMRC) Stamp Duty Land Tax calculator to work out how much tax you’ll pay.
As always, our experienced sales teams are happy to answer any questions you may have. Please search for your prefered development and get in touch - we'd love to hear from you.
*Additional Stamp Duty is due if any purchasers retain an existing residential property after acquiring a new Persimmon home. For full details, please refer to an independent legal advisor.