Wanting to buy property – Building Stamp Duty into your budget.
Peter Illingworth a highly professional and experienced Ryedale estate agent, with over 30 years of experience in this region says, “If you are wanting to buy a residential property in England, Wales and Northern Ireland then you may find yourself facing a stamp duty bill which can be quite considerable and therefore you must have this in mind when budgeting to buy”.
Peter went on to say, “The recent changes in the budget are favourable if you are a first time buyer, who is purchasing a property up to £500,000, you will now find that they will not have to pay stamp duty on the first £300,000, a saving of £5,000. However, you will have to pay 5% on the portion between £300,001 and £500,000. If you fall within this bracket you might like to use the SDLT calculator to work out how much tax you will pay. If your purchase is over £500,000 you will have to follow the rules for people who have bought homes before”.
The rates are as follows if you have bought a home before:
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 form £925,001 to £1.5 million) 10%
The remaining amount (the portion above £1.5 million) 12%
If you are replacing your own main residence and it has been sold you will not have to pay the extra 3% stamp duty. If there is a delay you will find that this tax will be due and you may be entitled to a refund, if you sell your property within 36 months of your main home being sold.
The higher rate of tax is due if you buy an additional residential property, or you buy at least two residential properties at the same time.
If you are not a first time buyer go to the SDLT calculator and see how much tax stamp duty you will have to pay.