Morgan Beddoe - Independent Estate Agents and Property Auctions
Stamp Duty
Stamp Duty is the tax you pay when you buy property or shares. You pay 'Stamp Duty Land Tax' when you buy property and either 'Stamp Duty' or 'Stamp Duty Reserve Tax' when you buy shares.
Stamp Duty Land Tax when you buy property
New thresholds introduced from 3 September 2008 mean that if you buy property and the purchase price is £175,000 or less you don't pay any Stamp Duty Land Tax at all.
If it's more than £175,000, you pay between one and four per cent of the whole purchase price. The £175,000 threshold (up from £125,000) will remain in place up to and including 2 September 2009.
However from the 1 January 2010 the stamp duty threshold will be reduced back to £125,000. This means that if you purchase a property over £125,000 you will pay Stamp Duty at a rate of 1%
| Residential property - purchase price | Rate of Stamp Duty Land Tax |
|---|---|
| up to £125,000 | 0% |
| £125,001 - £250,000 | 1% |
| £250,001 - £500,000 | 3% |
| £500,001 or more | 4% |
Get the full story at http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/BeginnersGuideToTax/DG_10010529?cids=Google_PPC&cre=Money