3 things to know about Stamp Duty
- October 01, 2020
- Phil Wells
What is Stamp duty?
Stamp duty is a tax that you might have to pay when purchasing your residential property in England and Northern Ireland.
How much will you pay?
The amount of tax you pay will depend on the value of the property. The current stamp duty rates as at 23/09/2020 are:
|Minimum Property Value||Maximum Property Value||Stamp Duty Rate|
|Over £1.5 million||12%|
You will only pay for the element that falls within the above categorise. For example, if your house cost £600,000, you would only pay stamp duty on the £100,000 that falls within the 5% stamp duty rate. Therefore, you would only pay £5,000.00 in Stamp duty tax.
These Stamp duty rates are expected to stay until the 31/03/2021, and only applies to your home and not on any additional properties that you might purchase. You must have completed the purchased by the 31st March 2021 to qualify for these rates.
How and When do you pay Stamp Duty?
You must pay the Stamp Duty Tax within 14 days of the purchase being completed. If this is not done, you might be charged interest by HMRC.
You will still need to complete a submission to HMRC even if you have no Stamp Duty to pay.
Normally your Solicitor will deal with this on your behalf, but it is your responsibility to make sure it has been completed in the 14 days.
For more information about Stamp Duty, click here.