How much Stamp Duty will I pay when buying a high value property?
Written by Alex Meyer | Residential Conveyancing Team | 14 March 2024
Buying a higher value property invariable means that you are going to be paying more Stamp Duty Land Tax.
This tax, which applies to most property purchases, can significantly impact the total cost of buying a property.
SDLT is essentially a tax on property purchases. Its calculation is based on the purchase price of a property, with a different rate applied at each threshold, structured in a tiered system. For high-value properties, these rates are typically higher, reflecting the substantial value of the property.
The current stamp duty rates are as follows:
Up to £250,000: Zero
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%
As always if you are buying a new main residence without selling your existing main residence you will be liable for the higher rate of Stamp Duty. You may then be able to claim this back if you sell your previous main residence within 3 years of your purchase.
As Conveyancers, we will prepare the Stamp Duty Land Tax return and submit the same on completion letting HMRC know that the property has been sold and receiving the certificate which needs to be sent to the Land Registry.
There may be complexities surrounding your particular purchase and , if so, we would recommend speaking with a specialist tax advisor or independent financial advisor who can give you detailed guidance on different Stamp Duty schemes and rules.
Our expert Residential Conveyancing team can answer any questions you may have and support you through the process. You can get in touch with them directly by calling 01752 827069 or clicking here.
