Stamp Duty Land Tax is a percentage paid on the purchase of a home or non-residential property to the Inland Revenue.
How Stamp duty is calculated
Stamp Duty is worked out as a percentage of the whole value of the property, and the percentage rate payable is graded into bands as follows:
0% on properties between £0 - £125,000
2% on properties between £125,000 and £250,000
5% on properties between £250,000 and £925,000
10% on properties between £925,000 and £1,500,000
12% on properties over £1,500,000
E.g. If you are buying a property at £140,000 you will have to pay stamp duty land tax of £300 i.e. 2% of £15,000.
Payment of Stamp Duty or claiming relief
Stamp duty is payable upon completion of the purchase of a property and your solicitor will have previously asked you to complete and sign an SDLT return. A return is completed even if you are eligible for stamp duty exemption and your solicitor will assist you with the completion of these forms, and will deal with the formalities of payment and lodging the forms.