How much is Stamp Duty?
The amount of Stamp Duty that you pay on a property purchase mostly depends on the value of the property that you’re buying, which determines which band you’re in, much like Income Tax.
There’s also the ‘threshold’, which is the minimum value the property must be for you to start paying Stamp Duty. If you buy a property below the threshold, you don’t pay Stamp Duty Land Tax.
For example, the current Stamp Duty threshold for residential property is £250,000. If you buy a residential property worth anything from £0 - £250,000, you don’t pay any Stamp Duty.
Once you start considering properties over £250,000, the different stamp duty rates (or ‘bands’) come into play.
If you’re a first-time buyer and meet the eligibility requirements, you don’t pay Stamp Duty on your first purchase of properties up to £425,000 and you pay a discounted rate on any property purchases up to £625,000.