What is stamp duty and who needs to pay it?
You pay tax when you:
buy a freehold property
buy a new or existing leasehold
buy a property through a shared ownership scheme
take on a mortgage or buy a share in a house
The amount of stamp duty you owe depends on the cost of the property, whether it will be used for residential purposes and whether you own any other property.
How much is stamp duty?
At the moment, buyers of homes worth less than £250,000 don't pay stamp duty. This was doubled from £125,000 under Liz Truss's mini-Budget in September.
The threshold is £424,000 for those buying their first property. This was raised from £300,000 as part of the mini-Budget.
These higher thresholds will end in March 2025 when they are expected to revert to previous levels.
£0-£250,000 (425,000 for first-time buyers) = 0%
£250,001 - £925,000 =5%
£925,001 - £1.5m+ = 12%