On completion of your purchase, any Stamp Duty Land Tax due must be paid to HMRC within 30 days.  We will collect this from you before completion and deal with the payment.  The amount you need to pay will depend on the purchase price:

 

Purchase price	Rate of Stamp Duty Land Tax
Up to £175,000	0%
£175,001 - £250,000	1%
£250,001 - £500,000	3%
£500,001 or more	4%

 

Before 3 September 2008, residential properties sold for less than £125,000 were exempt.  The increase to £175,000 is currently expected to apply for only 12 months from 3 September 2008. 

Unlike other taxes, there is no smooth progression between the bands.  So, if you purchase a property for £250,000, Stamp Duty Land Tax will be calculated at 1%, which comes to £2,500.  However, if the property costs £251,000, the Tax will be calculated at 3% on the whole amount - £7,530.  In certain circumstances, where a property is slightly over one of the thresholds, it may be possible to apportion part of the value of the property to chattels which are not subject to Stamp Duty Land Tax. 

Please contact us for further guidance on this.  

  

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