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Stamp Duty Amounts

How Much Stamp Duty Would I Pay on a 1 Million Pound House?

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How much stamp duty would I pay on a £1 million house?Stamp duty rates have changed over the past few years but one thing that remains the same is that you have to pay quite a bit of money in stamp duty when you purchase a 1 million pound house.

The amount that you pay is calculated in tranches based on the purchase price and needs to be paid within a few weeks of completing the property purchase. The tranches start at £250,000 – the figure at which stamp duty first becomes payable.

Main Residence

If the property that you are buying is your main residence then the amount that you would have to pay for a 1 million pound property is £41,250 which is quite a chunk of cash. For properties in London you won’t get a great deal for £1 million in some areas so you will need to factor this large stamp duty payment into your calculations.

Second or Other Property

If the property that you are buying is not your primary residence then you will need to pay an extra 3% on top of the standard rate shown above – so that would be an extra £30,000 on top of the £41,250 for a main residence, giving a total of £71,250.

If you would like to check out how much stamp duty you need to pay for other property prices then check out the stamp duty calculator which has figures for both main residence purchases and second property purchases.

Budget First Time Buyers Stamp Duty Amounts Stamp Duty Changes

What are the Stamp Duty Changes in the Mini Budget 2022?

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The chancellor, Kwasi Kwarteng, has today announced some changes in his ‘mini-budget’ including a reduction in the rate of stamp duty for some purchases. What are the stamp duty changes that have been announced? They are as follows:

  • No stamp duty is payable on purchases under £250,000 (this was previously set at £125,000) and for the tranche of the purchase price under that level for purchases over that amount – there is a different rate for first time buyers**
  • The next £675,000 (i.e. for properties up to £925,000) is charged at 5%
  • The next £575,000 (i.e. the amount charged between £925,001 and £1.5m) is charged at 10%
  • Amounts over £1.5m are charged at 12%

This means essentially that he has removed the 2% tranche for the purchase value between £125,000 and £250,000, which decreases the amount of stamp duty that is payable on properties above £250,000 by £2,500 (250,000 – 125,000 * 0.02). The other tranches remain as they were before and that is the only change.

What are the stamp duty changes?

What are the stamp duty changes in the September 2022 mini-budget?

The average house price in the UK in June 2022 was £286,397 so this reduction in stamp duty will impact a large number of house purchases and will help a lot of buyers in the mid range of property purchases as well as at the higher end.

** The rate for first time buyers is different – prior to 23rd September 2022 there was a 0% rate up to £300,000 and then a 5% rate from £300,000 to £500,000. This has now changed to:

  • 0% up to the first £425,000
  • 5% on the next £200,000 – i.e. up to £625,000

Note that if you are a first time buyer and your property purchase price is greater than £625,000 (£500,000 previously) then you are subject to the general rates (i.e. you don’t get the first time buyers discount).

The changes take effect immediately – i.e. from 23rd September 2022. Anyone who completes on a property purchase from this date onwards will be subject to the new stamp duty rates.

Stamp duty rates for second properties reflect the rates for main properties but with an additional 3% added, so stamp duty for additional properties will also be affected.

These are also permanent changes rather than the temporary ones that occurred in the last few years.

 

Stamp Duty Amounts Stamp Duty Questions

How Much Stamp Duty on a £550k Property?

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how much stamp duty on a £550k houseHow much stamp duty will I have to pay on the purchase of a £550k property? The answer to this depends on what your situation is and in particular whether this purchase is for your main or only residence or if you have/will have other property and it will be a subsequent property purchase.

So let’s consider the most straightforward scenario first – you are buying a property that you are planning to live in as your main residence (figures updated September 2022). Continue reading

Stamp Duty Amounts Stamp Duty Questions

Stamp Duty – £210,000 House

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stamp duty payable on 210k propertyHow much stamp duty is payable on a house being purchased for a price of £210,000?

In another in our series we look at how much stamp duty you need to pay when you buy a house worth £210,000. Stamp Duty is payable on residential properties over the value of £250,000 and so you may need to have some extra cash to pay for this charge once the transaction completes and you own the property.

Stamp Duty is calculated in tranches at different rates and for a property worth £210,000 you now do not need to pay any stamp duty (figures updated September 2022).

However, if you are buying a second or subsequent property then you will need to pay the additional stamp duty of 3% which is due on those purchases. If you are in any doubt about whether you have to pay this then consult your solicitor but the basic rule is that if you own or part own another property (no matter where in the world) then you will have to pay the additional stamp duty.

So if this is an additional property purchase then you will need to pay £6,300 as 3% of the purchase price. This is calculated on the whole purchase price.

The Stamp Duty needs to be paid within 14 days of the transaction otherwise you will be subject to a fine and/or interest on the payment. You can submit the payment and form yourself but it is usually done by your solicitor.

Check out the Stamp Duty Calculator page for property purchases of different amounts.

If you are a first time buyer then you may be entitled to a reduced (or zero) rate of stamp duty on your property purchase – you can find details of that here.

These figures do not take into account any temporary suspension of stamp duty that may be in force.
Stamp Duty Amounts Stamp Duty Questions

How Much Stamp Duty on a £425,000 Property?

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How much stamp duty is payable on a property with a purchase price of £425,000?

When you purchase a property in the UK you will need to pay stamp duty on that purchase which is an additional cost that needs to be taken into account when the purchase goes through.

The amount of stamp duty payable depends on the cost of the property transaction and can be calculated using our stamp duty calculator.

If you are buying a property worth £425,000 then the amount of stamp duty payable depends on whether this is your main property purchase or if it is a second or additional property for which there is a higher rate payable.

There are some quite complicated rules surrounding the first and second property definitions so you should consult your solicitor if you are in any doubt and they should be able to advise you.

Main Property Stamp Duty

For those who are buying a property as a main home then the standard rates apply and the amount payable would be £8,750 (figures updated for the September 2022 changes).

Second Property Stamp Duty

If you are buying a property that is classed as a second home then you will need to pay an additional 3% on the purchase price which brings the total payable up to £21,500.

Stamp Duty needs to be paid within 14 days of the completion of the transaction (according to current rules) and is usually paid through your solicitor although it is possible to pay it yourself.

If you are a first time buyer then you may be entitled to a reduced rate of stamp duty on your property purchase – you can find details of that here.

These figures do not take into account any temporary suspension of stamp duty that may be in force.
Stamp Duty Amounts Stamp Duty Questions

How Much Stamp Duty on a £375,000 Property?

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As you are probably aware, stamp duty is payable on most property purchases in the UK and the amount payable is dependent on a few criteria – the main one being the cost of the property that you are buying and also whether the property you are purchasing is your main or only home, or whether it is a second or additional home.

You will need to liaise with your conveyancer for full clarification of which level of stamp duty that you need to pay but you can calculate the amount due yourself.

So if you are purchasing a property that costs £375,000 then you may wish to know how much stamp duty is payable on that purchase.

Main Home

For anyone who is purchasing their main or only home (this includes when you are replacing your main residence with this purchase but you do own other properties) then the amount payable for the transaction is £6,250 (updated September 2022).

The way that this is calculated is as follows:

5% of the amount between £250,000 and £925,000 – so in this case 5% of £125,000 (375,000 less 250,000) = £6,250

Second Property

If you are buying a second property then you need to add on an extra 3% of the total purchase price i.e. 3% of £375,000 = £11,250

So add this on to the £6,250 and you have a total stamp duty amount for second properties of £17,500.

There are a lot of rules about second properties and the stamp duty payable so you do need to consult your solicitor or HMRC if necessary.

You can calculate your own stamp duty payable by using our online calculator if you are not sure exactly how much you will be paying for a property. Check it out here.

Other Factors

If you are a first time buyer then you may be entitled to a reduced rate of stamp duty on your property purchase – you can find details of that here.

These figures do not take into account any temporary suspension of stamp duty that may be in force.
Stamp Duty Amounts

How Much Stamp Duty is Payable on a House Costing £220,000?

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stamp duty payable 220k

As you probably know, stamp duty is payable when you buy a residential property in England and the amount payable depends on the purchase price of the house or property that you are buying.

In this series of articles we are addressing how much you will need to pay for a property worth a specific amount of money, in this case £220,000.

At the time of writing this article, property purchases above £125,000 were subject to stamp duty. As of September 2022, however, stamp duty is no longer payable on purchases under £250,000.

So there are 2 rates of stamp duty that may be payable – the first is the standard stamp duty that is payable on a main or only residence. This amount is also applicable if you are selling your main residence and moving into the property that you are buying (regardless of other properties that you may own).

Stamp duty rates are tiered but payable on the purchase price so we have made it easier for you to calculate the amount payable for different purchase prices by using the online calculator.

For a main or only property purchase the amount of stamp duty payable on a house worth £220,000 is now zero.

However, if the property that you are buying is a second property (even if that property is owned abroad) then you will have to pay an extra 3% of the purchase price.

This means that the amount payable for a second property is £6,600 which is obviously a significant amount greater that that for a main property.

If you are in any doubt about which rate of stamp duty is payable on your purchase then you should contact your solicitor who should be able to advise you or get clarification from HMRC.

Other Factors

If you are a first time buyer then you may be entitled to a reduced (or zero) rate of stamp duty on your property purchase – you can find details of that here.

These figures do not take into account any temporary suspension of stamp duty that may be in force.
Stamp Duty Amounts

Stamp Duty on a £325,000 Property

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325k stamp dutyHow much stamp duty is payable when you buy a property costing £325,000? (Updated September 2022)

If you are buying a property in the UK then you probably know that you will need to pay stamp duty on the transaction when the purchase completes. The payment is usually made through your solicitor no later than 14 days after completion.

The amount of stamp duty that is payable depends on the purchase price for the property as well as whether this is the only property that you will own at the point of the house purchase.

If the property is your only or main residence then you will pay standard stamp duty and this is also true if you own multiple properties but you are replacing your main residence with this purchase.

The amount of stamp duty you will need to pay in this instance is £3,750.

If you are buying your first property then you may be eligible for first time buyer’s stamp duty relief which means that you will not have to pay any stamp duty on the purchase.

If the property that you are buying is a second or subsequent purchase for either purchaser (if you are purchasing as a couple) then you will need to pay a higher rate of stamp duty which works out at an additional 3% of the whole purchase price.

This gives a total amount of stamp duty payable on ‘second homes’ of £13,500, a serious increase on the standard amount that would be payable.

If you are confused as to whether you would have to pay the higher amount of stamp duty then you should contact your solicitor who will be able to advise you.

You can also check the different amounts of stamp duty that you would pay on different purchase prices by entering the purchase price in the stamp duty calculator.

These figures do not take into account any temporary suspension of stamp duty that may be in force.
Stamp Duty Amounts Stamp Duty Questions

Stamp Duty on a £275,000 House

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How much stamp duty would you pay on a £275,000 house? (Updated September 2022)

It can be quite complicated to work out the amount of stamp duty payable when you buy a house as you have to calculate it in tranches. So we are here to take the hassle out of it and let you know the amount that you will have to pay when you complete on your house purchase.

Stamp duty needs to be paid on residential property purchases within 14 days of completion so you will need to have this money available when the transaction takes place. Often the solicitor that is doing the conveyancing will pay the stamp duty to HMRC on your behalf once they have received the funds.

So the amount that is due on a £275,000 house depends on whether it is your first/main property purchase or whether it is a subsequent property (in which case there is an extra amount due).

If it is your first or main property then the amount of stamp duty payable is £1,250.

If it is a second (or subsequent) property then you will need to pay £9,500, a substantial difference.

You will need to clarify with your solicitor whether or not the higher stamp duty amount is payable if you are in any doubt.

Other Factors

If you are a first time buyer then you may be entitled to a reduced (or zero) rate of stamp duty on your property purchase – you can find details of that here.

These figures do not take into account any temporary suspension of stamp duty that may be in force.