Stamp duty is a tax which is paid when you buy a property, the amount will depend on the purchase price of the house. It is crucial that you consider stamp duty as part of your budget if your home is costing a quarter of a million pounds or more.
Stamp Duty Rates
You will pay no stamp duty if your property costs less than £250,000, after that you will pay:
5% on a property costing £250,000-£925,000
10% on a property costing £925,000-1,500,000
12% on a property costing over £1,500,000
The stamp duty threshold is different if you are buying your first home. First time buyers will pay no stamp duty on a property if its price is under £425,000.
Buying additional properties means you will pay extra stamp duty. If buying a property means you own more than one, you will pay an extra 3% stamp duty on top of the standard rate.
Unfortunately, you cannot add stamp duty to your mortgage. Usually, the stamp duty payment is looked after by your solicitor and is normally paid on completion by your solicitor or conveyancer.