After the announcement in the budget that stamp duty for first time buyers has been abolished for anyone buying a property worth up to £300,000 – we thought it would be good to remind you what you’ll have to pay as a ‘next time’ buyer.
For properties up to £125,000 the rate remains at 0%. Those priced £125,001 to £250,000 have a rate of 2% and those at £250,001 to £925,000 a rate of 5%. Properties priced between £925,001 to £1.5 million have a rate of 10% and those lucky enough to be able to afford a property in the £1.5 million region, the rate is 12%.
For example, on a property priced at £275,000, you would pay the following:
0% on the first £125,000 = £0
2% on the next £125,000 = £2,500
5% on the final £25,000 = £1,250
Total Stamp Duty = £3,750
If you are a first time buyer, you won’t pay any tax up to £300,000 and only 5% on the portion from £300,001 to £500,000. If the price is over £500,000, you follow the rules for people who’ve bought a home before as above.