Stamp duty explained with mortgage broker, Deal Direct.
Mortgage broker, Deal Direct, can answer all your mortgage questions.
Two of the most frequent ones that we are asked are, ‘What is stamp duty?’ and ‘How much do I need to pay?’
When you are thinking of buying a property, stamp duty land tax should always be factored into your calculations. How much you pay initially depends on the value of the property, but it also depends on where you live. Scotland has a separate system, but the following information applies to England, Wales and N. Ireland.
Different rates are applicable to different portions of the value. For example:
- For the first £125,000, the SDLT payable is 0%.
- For between £125,001 and £250,000, the SDLT is 2%.
- For between £250,001 - £925,000, the SDLT is 5%.
- For between £925,001 - £1.5million, the SDLT is 10%.
The remaining section over £1.5million, the SDLT payable amounts to 12%.
For those of you who are considering the purchase of a second home, an additional 3% of SDLT is payable on the above rates.
There are also different regulations and rates to consider for buy to let purchases, for corporate bodies, trusts or companies buying a residential property, if you are buying 6 or more properties in one go or whether any of the properties involve shared ownership.
What may appear to be a bit of a daunting subject to fully understand at first, can be easily unpacked for you by Deal Direct. One of our dedicated advisors can guide you, step by step, through the different rates that may apply. This way, you can be sure of avoiding any miscalculations, and being unpleasantly surprised by having to pay more than you thought, when the sale is finalised.
For clear, easy to understand mortgage advice you can trust, call Deal Direct.
Speak to us now on 0800 048 8828.
