If you’re buying a main home there is no stamp duty to be paid on the portion of the property priced at or below £125,000. So, if you spend up to £250,000, you’ll get the first £125,000 tax free, but will pay two per cent tax on the portion above that.
Anything you spend between £250,001 and £925,000 will incur 5% tax, rising to 10% for properties priced between £925,001 to £1.5 million. If you spend above £1.5 million, you will pay 12% in stamp duty tax. Stamp duty rates are higher for those buying a second home.
Stamp Duty Land Tax rates from 1st October 2021
Up to £125,000 Zero
The next £125,000 (the portion from £125,001 to £250,000) 2%
The next £675,000 (the portion from £250,001 to £925,000) 5%
The next £575,000 (the portion from £925,001 to £1.5 million) 10%
The remaining amount (the portion above £1.5 million) 12%
First Time Buyers
If you’re a first-time buyer you won’t pay any tax on homes priced at or below £300,000. However, you will pay five per cent on a property, or the portion of a property, priced between £300,001 and £500,000. If the property you’re buying is priced above £500,000, you won’t be eligible for a saving and you’ll have to pay the stamp duty rates above.
