Stamp Duty – Everything That you Need to Know

When you’re about to buy a property that you may not live in all of the time, you will have to pay an extra 3% in stamp duty. This is irrespective of which part of the UK you live in.

However, there is an exception to this rule, and it affects those who have never owned a property (First time buyers) and are thinking of purchasing a buy-to-let property. First time buyers will, in this case, pay typical home mover rates.

Second homes and buy-to-let properties have stamp duty rates that are tiered. Investors who live in England and Northern Ireland will have to pay the following costs

Portion of Property Price Stamp Duty Percentage
£0 – £40,000* 0
£0 – £125,000** 3
£125,001 – £250,000 5
£250,001 – £925,000 8
£925,001 – £1.5m 13
£1.5m+ 15

*If the total prices are £40,000 or less.

**If the total prices are more than £40,000.

Stamp Duty Exemptions

Some buy-to-let properties come with stamp duty exemptions but they only come into effect if you are in a civil partnership or you’re married and one or both of the partners owns a property. In a case such as this, you will need to pay the stamp duty regardless of how many properties you own.

If the property has not been purchased by an individual but a company the additional stamp duty will still apply irrespective of how many properties are owned by the company.

First Time Buyers

You will not have to pay stamp duty if you’re a first time buyer and your home is a buy-to-let property. However, you will not qualify for stamp duty exemption as it only applies to people who are intending to live in the property. You will, instead, pay the standard stamp duty rates.

Moving Home

If you decide to buy a new house before you have sold your old one you will have to pay a higher stamp duty rate. The good news is you can claim the rate back within 3 years of buying a new home.

Interest in a Property

If you have inherited up to 50% of an additional property or you have financial interest in one as you’re in a partnership it is unlikely you’ll need to pay additional stamp duty.

About Us

Slater Forbes are one of the leading property investment companies specialising in off-plan property

20 Years Experience

Please note that Slater Forbes Investments is not authorised or regulated by the Financial Conduct Authority and is not permitted to offer financial or investment advice to UK resident investors, whether or not the intended investments are regulated or unregulated. We strongly encourage all prospective purchasers to consult an FCA-authorised Independent Financial Adviser before committing to any form of investment. This is not an offer to participate in a collective investment scheme as defined in section 235 of the Financial Services and Markets Act (2000) and Investors will not have access to the Financial Services Compensation Scheme or the Financial Ombudsman Service. This website, videos and documents referred are intended to provide general information concerning the proposed development, construction and the management of ”The Development’. The information provided has been prepared in good faith and to give a fair overall view of the Development. Photographs and electronically generated images, furnishings and accessories featured are for illustrative purposes only. All information provided by us at our web site or otherwise is provided on an illustrative basis. This email is for the sole use of potential business partners and/or prospective purchasers. We recommend that all appropriate commercial, tax and legal enquiries and advice is taken before entering into a legally binding contract to purchase a property forming a part of the development. All investments attract a degree of risk and Slater Forbes encourage all clients to undertake their own due diligence. Property prices can fluctuate and the value of your investment may go down as well as up. Prices and financial illustrations are provided as guidance and are examples of the possible discounts, yields and returns that investors could achieve. Copyright in and to this website and documents and videos referred belong to Slater Forbes, which is a trading name of Green Key Sales and Lettings Ltd, which is a UK registered company no 10037602.