Stamp Duty: All You Need to Know
Whether you’re a first-time buyer or have been in the property world for a while, Stamp Duty can be quite a confusing concept when buying a house
Here’s all you need to know about Stamp Duty, the recent changes, and what it means for you.
What is Stamp Duty?
Stamp Duty Land Tax, often known as SDLT or simply Stamp Duty, is a lump sum payment that you have to pay when buying a property or piece of land. The amount you pay depends on the price of the property.
How much is Stamp Duty?
As of 23rd September 2022, buyers in England and Northern Ireland will pay no Stamp Duty on the first £250,000 of the property’s value (previously, the threshold was half of this, at £125,000).
First time buyers will pay no tax on the first £425,000 of the property’s value (previously, the threshold for first time buyers was £300,000.) So, if you’re buying your first home for less than £425,000, which is likely, then you won’t pay any Stamp Duty.
The below table breaks down the new Stamp Duty rates.
Why were the changes made and what does that mean for you?
This recent update to Stamp Duty rates is part of the government’s commitment to supporting home ownership, in turn, supporting economic growth. Essentially, if you’re buying a house, no matter what your situation, you will now pay less or no Stamp Duty, meaning you will have more money to spend or save. This change should have a positive impact on all house buyers, especially in this current climate and the cost of living crisis.
How do you pay Stamp Duty?
This is usually all handled by your solicitor or conveyancer, however you can pay HMRC directly if you wish. Stamp Duty must be paid within 14 days of completion.
Want to know how much Stamp Duty you’ll need to pay? Use the governments free calculator here to find out.
Still fall into that Stamp Duty bracket? Don’t worry, here at Stonebridge Homes we have an incredible offer on throughout the month of October 2022. If you reserve a home at any of our developments in October 2022, we will pay the Stamp Duty for you!