Stamp duty is the tax you pay on a residential property or a piece of land in England and Northern Ireland if your property is a certain price. The actual name of the tax and the rates applied depend on whether you’re a first-time buyer and how many properties you currently own where this is relevant.
The stamp duty rate ranges from 2% to 12% of the purchase price, depending upon the value of the property bought, the purchase date and whether you are a multiple homeowner.
Looking to put your property on the market with the leading and fastest-growing agency in Colchester? Get an instant free valuation today.
How much stamp duty do I pay?
The rate of stamp duty depends on where you are buying a property and the property price, there are several rate bands for stamp duty. Until 30th of June 2021, you will pay no stamp duty on the purchase of your main property costing up to £500,000. If the property you’re buying costs more than £500,000, you’ll pay stamp duty based on the revised rate bands:
If you purchase a house as an example for £575,000 the stamp duty tax you owe is calculated as follows:
0% on the first £500,000
5% on the final £75,000
Stamp duty from 1st July 2021
From the 1st of July to the 30th of September 2021, you’ll pay no stamp duty on residential properties costing up to £250,000. If you’re a first-time buyer, you’ll pay no stamp duty on properties costing up to £300,000.
Stamp duty from 1st October 2021
From the 1st of October 2021, you’ll pay no stamp duty on properties costing up to £125,000, unless you are a first-time buyer. This means that the stump duty will return to the normal rates which are as follows
Stamp duty for first-time buyers
From the 1st of July 2021, if you're a first-time buyer in England or Northern Ireland, you will pay no stamp duty on properties over £300,000. If the property you’re purchasing is over £500,000, you will pay no stamp duty on the first £300,000 - meaning you pay the relevant rate of 5% on the remaining £200,000. If the property is over £500,000, you will not have the benefit of the first time buyers stamp duty relief.
Stamp duty on second homes
If you’re purchasing an additional property, you’ll have to pay an extra 3% in stamp duty on top of the revised rates for each band up until the 30th of June 2021. This applies to all properties over £40,000.
Looking for a property in Colchester or the surrounding Essex area? Discover our properties today.
Here at Oakheart Property, we have a team of highly-experienced sales and letting agents across Essex and Suffolk. Our team pride themselves on going above and beyond to help clients with all their property needs. Want to find out how we can help you? Get in touch.
