Stamp duty thresholds in England
Purchasing a property sold at £125,000 or higher will require a certain amount of stamp duty land tax to be paid. This figure is calculated on a percentage of the cost of a property, with the rate payable changing as it passes through certain thresholds.
For example, if you buy a property worth £350,000 then you will pay nothing on the first £125,000, pay 2% on the portion between £125,001 and £250,000, then pay 5% for the remaining amount up to £350,000, which equals £7,500.
These rates differ slightly for first time buyers, as no stamp duty is payable on the first £300,000 of your property. first time buyers are then charged 5% on the next £200,000, meaning they will only have to pay £10,000 stamp duty on a £500,000 property.
If you already own a home and are purchasing a second property for Buy to Let purposes or as a holiday home, then stamp duty differs here again too. In April 2016, the stamp duty laws were changed for investors or people who own more than one property, This means they have to pay an additional 3% stamp duty on any purchase, other than their main home. However, if they subsequently sell the original property within 3 years they can then apply to have the additional 3% refunded.