What are the Stamp Duty rules now?
Last year, the Chancellor announced a Stamp Duty holiday for certain purchases to help get the Country back on its feet following the Covid-19 crisis. This holiday has now come to an end. You may be wondering what are the Stamp Duty rules now for property purchases, and how much Stamp Duty you would need to pay.
Here, we break it all down for you. As always, if you need to chat any of this through, then contact a Mortgage Adviser from Your Mortgage Expert for clear and impartial advice. In this article, we refer to the rules in England – there are slightly different rules for Wales and Scotland.
Stamp Duty rules for existing property owners
If you currently or previously have owned a property, the Stamp Duty rules have returned to their pre-Covid levels. So, for single or replacement property purchases, you will pay no Stamp Duty on properties with a purchase value of less than £125,000. After that, you will pay land tax as follows:
- £0-£125,000 = 0%
- £125,001-£250,000 = 2%
- £250,001-£925,000 = 5%
- £925,001-£1,500,000 = 10%
- £1,500,001+ = 12%
The government has a handy Stamp Duty Land Tax (SDLT) calculator which will show you exactly how much you will need to pay.
What about First Time Buyers?
The Government is still keen to help First Time Buyers get on the property ladder. So the Stamp Duty rules are slightly different if you are looking to buy your first home.
First-time buyers do not have to pay any stamp duty on property purchases up to £300,000. You will then pay stamp duty for higher value property purchases.
There is also help for First Time Buyers under the Government Guarantee Scheme. Under this, High Street lenders are offering mortgages with a deposit of just 5%.
What are the Stamp Duty rules for Landlords?
If someone is purchasing an additional property in England and Northern Ireland they will have to pay a 3% additional property rate. By additional property, we mean someone who already owns their residence and/or a buy-to-let and is buying an additional property.
If a landlord is purchasing a their first property, they pay the standard rate of Stamp Duty tax.
How Your Mortgage Expert can help
Your Mortgage Expert is an impartial mortgage broker firm based in Salisbury. We understand how the mortgage market works including the Stamp Duty rules. We will look at your personal situation and help establish what you can afford and what types of mortgage will be available to you based on your circumstances.
We don’t charge anything up front, so by speaking to us, you are under no obligation. We are based in Salisbury, Wiltshire, but we can help you no matter where you live in the UK.
Simply call us on 01722 322683 or complete a contact us form on our website and tell us when it would be best to get back in touch with you.
The information contained within this article was correct at the time of publication. It is intended for information only and does not constitute advice. Your Mortgage Expert Ltd and Mortgage Advice Bureau cannot be held responsible for information that was correct at the time of publication but subsequently changes or goes out of date due to changes in legislation.