How is stamp duty calculated?

Stamp duty land tax is used whenever a property or land is purchased.  It goes by different names in Wales and Scotland but is generally referred to simply as stamp duty.   This cost is usually accumulated at the near end of the house purchase process.  Until recently a holiday  was imposed on the payment of stamp duty but this has now ended.  It is generally accepted that everybody pays stamp duty land tax.  However there is one exception to this: the first time buyer is exempt.  The rationale behind this is that simply entering the property  ladder is a difficult task.

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It is easy to calculate how much you were going to pay on stamp duty land tax.  It depends on two factors.  The first is when you bought a property.  The second is how much you have actually paid for it. In cases where the property comes in at £40,000 or below there is no stamp duty to pay however you still need to record this with the government.

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The scale is relatively forgiving.  If you purchase a property up to £250,000 there is no stamp duty land tax to pay.  However anything above that up to the price of £675,000 will incur a 5% portion of the cost price. If the property is valued at over £575,000 you will pay 10% up to the value of £1.5 million.  The percentage of the property above £1.5 million will be subject to a   stamp duty land tax of 12%.  Therefore it follows that the more expensive the property you purchase the more you will pay in stamp duty land tax. To look to Reclaim Stamp Duty try https://www.sentientsdlt.co.uk/