If you’re new to the whole house-buying process then terminology like this can confuse you so much it may even put you off buying a house completely! Luckily for you we’ve simplified what this means so that you can be confident is knowing what Stamp Duty is moving forward.
What is stamp duty?
Stamp Duty has to be paid when you buy a property or piece of land that costs more than £125,000, even if you’re a first-time buyer. The amount you pay is calculated based on the value of the property you are wanting to buy. For example, if you buy a house for £275,000 these are the calculations that will take place:
- 0% on the first £125,000 = £0
- 2% on the next £125,000 = £2,500
- 5% on the final £25,00 = £1,250
- Final Stamp Duty = £3,750
How to pay your Stamp Duty
You will usually have a solicitor complete your Stamp Duty for you but it is possible for you to do it yourself. Either way, make sure all paperwork is completed and submitted in time or it could delay the whole house-buying process.
Is Stamp Duty payable on fixtures and fittings?
Thankfully, Stamp Duty is not payable on domestic appliances, carpets, curtains and furniture. However, if these items are included in the price you pay for the house then you can usually deduct them before calculating the Stamp Duty bill.
Got any more questions about how Stamp Duty works? Write it in the comments below.
[Image sourced from the Blue Diamond Gallery]
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