STAMP DUTY LAND TAX

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On completion of your purchase, any Stamp Duty Land Tax due must be paid to HMRC within 30 days.  We will collect this from you before completion and deal with the payment.  The amount you need to pay will depend on the purchase price and is currently:

 

Purchase price

Rate of Stamp Duty Land Tax

Up to £175,000

0%

£175,001 - £250,000

1%

£250,001 - £500,000

3%

£500,001 or more

4%

 

Before 3 September 2008, residential properties sold for less than £125,000 were exempt.  The increase to £175,000 is currently expected to apply until 31 December 2008, when the 0% threshold will revert to £125,000.

Unlike other taxes, there is no smooth progression between the bands.  So, if you purchase a property for £250,000, Stamp Duty Land Tax will be calculated at 1%, which comes to £2,500.  However, if the property costs £251,000, the Tax will be calculated at 3% on the whole amount - £7,530. 



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