Stamp duty thresholds in England
Purchasing a property sold at £125,001 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 £950,000 then you will pay nothing on the first £125,000, pay 2% on the portion between £125,001 and £250,000, 5% on the portion between £250,001 and £925,000 then pay 10% for the remaining amount up to £950,000.
These rates differ slightly for first time buyers. You’ll get a discount (relief) that means you’ll pay less or no tax if both the following apply:
you, and anyone else you’re buying with, are first-time buyers
the purchase price is £250,000 or less
You’ll also be eligible for this discount if you bought your first home before 8 July 2020.
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. This means you'll have to pay an additional 3% stamp duty on any purchase, other than your main home. However, if you subsequently sell the original property within 3 years you can then apply to have the additional 3% refunded.
