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Stamp Duty & how to avoid it

This is a property tax paid by buyers. It is levied as a percentage of the whole total purchase price of the property transaction.

The amount payable varies in relation to the purchase price:-



















It can be seen that once the thresholds are exceeded, even by a small amount, there is a marked increase (over £5,000) in stamp duty. It is therefore sensible to avoid properties that are priced just over the thresholds. For example a house costing £265,950 will cost £5,479 in additional in stamp duty. Obviously it is common sense in such cases to negotiate a deal with the seller to bring the “price” under the £250,000 threshold or get the seller to pay towards the additional stamp duty.

Property in an area designated by the government as “disadvantaged” will not be subject to Stamp Duty if the purchase price is £150,000 or less.

External Link - How to Avoid Stamp Duty

For example a house selling for :-

£126,000 will attract a 1% stamp duty of

£249,950 will attract a 1% stamp duty of

£250,001 will attract a 3% stamp duty of

£499,950 will attract a 3% stamp duty of

£500,001 will attract a 4% stamp duty of

Less than £125,000 - Nil

£125,001 to £250,000 - 1% of total property purchase price

£250,001 to £500,000 - 3% of total property purchase price

Above £500,000 - 4% of total property purchase price

£1,260.00

£2.499.50

£7,500.00

£14,998.50

£20,000.00