Good news! The Government has announced changes to Stamp Duty, which means you could save thousands when you move to a brand new Pennyfarthing home. The threshold at which buyers are required to pay Stamp Duty has been raised from a purchase price of £125,000 to £250,000.
In addition, the level first time buyers at which start paying stamp duty on a property has increased from £300,000 to £425,000.
When you buy a property the change in land ownership has to be legally registered at the Land Registry. This process requires a certificate from the HMRC – which they will only issue on receipt of the Stamp Duty due on the purchase of the property.
The transfer of funds to pay the Stamp Duty will be managed for you by your solicitor.
How much is Stamp Duty?
Following the Government announcement on 23rd September 2022, there is no Stamp Duty to pay on the first £250,000 when you buy a home, then the following rates apply:
| Purchase Price | Stamp Duty % |
| £0 to £250,000 | 0% (Zero) |
| £250,001 to £925,000 | 5% |
| £925,001 to £1,500,000 | 10% |
| Over £1,500,000 | 12% |
Following the Government announcement on 23rd September 2022 if you’re a first-time buyer, purchasing a home up to £625,000 (previously £500,000), the following rates apply:
| Purchase Price | Stamp Duty % |
| £0 to £425,000 | 0% (Zero) |
| £425,001 to £625,000 | 5% |
Note: For properties priced over £625,000, no first-time buyer relief is available. See existing homeowner Stamp Duty rates above.
If you are buying an investment property or an additional home, the following rates will apply to your purchase:
| Purchase Price | Stamp Duty % |
| £0 to £125,000 | 3% |
| £125,001 to £250,000 | 5% |
| £250,001 to £925,000 | 8% |
| £925,001 to £1,500,000 | 13% |
| Over £1,500,000 | 15% |
To find out what this means for you, and how you could save, get in touch on 01202 403144.
For further information on Stamp Duty, visit GOV.CO.UK
