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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 Stamp Duty Changes

Stamp Duty Cut End Date

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The last few months have been a case of changes, u-turns, and more changes for the UK taxation system. One change that was put in by Kwasi Kwarteng in his short lived mini budget, was a change to stamp duty rates. This meant that rates were cut for a significant number of transactions (see link for details). However, in the Autumn Statement made yesterday by the new chancellor, Jeremy Hunt, a stamp duty cut end date was announced. Continue reading

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.

 

Budget Stamp Duty Changes

Stamp Duty Holiday Extended

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Rishi Sunak delivered his budget speech today in the Houses of Parliament

In the budget today (3rd March 2021), Rishi Sunak announced that the stamp duty holiday that was previously going to run until 31st March 2021, has been extended until 30th June 2021.

This extension was anticipated by the press and industry alike, as there has been a lot of action in the housing market to take advantage of the stamp duty holiday.

The stamp duty holiday had led to a busy period for conveyancers and estate agents and meant that it was likely that quite a few people would miss the deadline of the 31st March due to a bottleneck in the transactions.

Many people decided that this was an opportunity to move house and save some money – although it did seem that house prices rose because of the stamp duty holiday and so any saving may be difficult to gauge.

The stamp duty holiday, that was introduced in July last year, meant that there was a nil rate band for transactions up to £500,000 (above that amount normal rates applied for the excess above that level).

The Chancellor also announced that once the nil rate band for £500,000 was over in June, there would be a tapered approach to reverting to the previous amount of £125,000. This means that there will be a nil rate band up to £250,000 of the purchase price until the end of September (so for 3 months) and then on 1st October the rates would revert to normal, where only the first £125,000 of a purchase is tax free.

The £500,000 nil rate band potentially saves house buyers up to £15,000 which is the amount that would normally be charged on the purchase of a property worth £500,000. Obviously the saving is less if the purchase price is less than £500,000.

If you want to find out how much stamp duty that you will need to pay (with or without the stamp duty holiday) then you can check out our page with our stamp duty calculators.

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

2nd Property Stamp Duty Covid-19 Stamp Duty Questions

Does the Stamp Duty Cut Apply to Second Properties?

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stamp duty cut apply to second properties?Last week, the Chancellor Rishi Sunak announced a cut in stamp duty to 0% for the first £500,000 of the property purchase price in order to kick start the housing market. But does this stamp duty cut apply to second properties?

The answer to this question is yes and no. The way that stamp duty is calculated on a second property is that you basically pay an additional 3% of the purchase price on top of the standard stamp duty that is payable on a residential property (assuming that the property you are purchasing costs more than £40,000). Continue reading

Covid-19 Stamp Duty Changes

Stamp Duty Suspension

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Official portrait of Rishi Sunak crop 3

Today (8th July 2020) the Chancellor of the Exchequer, Rishi Sunak has announced that there will be a temporary cut to stamp duty payments up to £500,000 until 31st March 2021, due to the effect of the Covid-19 pandemic on the housing market.

Mr Sunak said that the reasons behind implementing this reduction were that the housing market needed a push to restart. The number of property transactions dropped 50% in May, house prices have decreased and the sector needs a push to get the market moving. Continue reading

Covid-19 Stamp Duty Changes

Rishi Sunak to Make Stamp Duty Annoucement

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uk property stamp duty

Stamp Duty could be reduced to 0% temporarily for some purchases.

It is expected that today, 8th July, Rishi Sunak will unveil a host of financial packages to help the recovery after the Covid-19 pandemic.

Among those changes is a possible suspension of stamp duty payments to try and encourage the housing market to recover.

This could mean that buyers of properties up to a certain value (possibly £500,000) may not need to pay any stamp duty when moving house – but we will update you here as soon as the full details are announced. Continue reading

Covid-19 HMRC

Covid-19 and Property Transactions

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stop property transactions

Transactions may need to be put on hold during this phase of the Covid-19 pandemic.

Last week the government issued some new advice regarding anyone who planned to complete on a property transactions in the coming few weeks. The government is urging parties involved in home moving to adapt and be flexible to alter their usual processes.

Where the property being purchased is vacant then the transaction could go ahead as planned. Otherwise people are advised to delay the transaction if they possibly can and to try and find an alternative date in the future. Continue reading