Stamp duty
You usually only have to pay this tax when you buy land or shares. The duty on the latter is only 0.5% and has remained unchanged for many years, but the duty on the former has been increased sharply since 1997.
Residential property value Present rates
| £0 to £175k |
@ 0% |
| £175k to £250k |
@ 1% |
| £250k to £500k |
@ 3% |
| Over £500k |
@ 4% |
Stamp duty is levied on the final property sale price and can mean a sizeable chunk of any profit from a sale going to the Treasury.
For instance, the stamp duty on a house sold for £500,001 is £20,000, but if it were sold at £499,999, the vendor would save £5,000 in stamp duty. It can also mean developing a property rather than moving can lead to substantial savings in this tax.
We can work with your solicitor to help you find the best solution to suit your circumstances.