STAMP DUTY EXPLAINED
Stamp Duty is the tax you pay when you buy property or shares. You pay 'Stamp Duty Land Tax' when you buy property and either 'Stamp Duty' or 'Stamp Duty Reserve Tax' when you buy shares Stamp Duty Land Tax when you buy property.
You pay Stamp Duty Land Tax on properties lsuch as houses, flats, other buildings and land. If the purchase price is £125,000 or less you don't pay any Stamp Duty Land Tax at all. On the 24th March 2010 the Labour budget exempted FTB's from paying stampduty on property purchases below £250,000 as of midnight (24-3-2010) for 2 years until 24-3-2012.
Residential property - purchase price
Rate of Stamp Duty Land Tax
£0 - up to £125,000
0%
£125,001 - £250,000
1%
£250,001 - £500,000
3%
£500,001 - £999,999
4%
To find out more about Stamp Duty Land Tax, including how you pay it and a link to HM Revenue & Customs' Stamp Duty Land Tax calculator, read the article 'Tax on buying property'.
Further information prepared by INEA's Legal Specialists:
Stamp Duty on Leased Property - by Net Lawman