Stamp duty is a tax applicable to most home buyers in England and Northern Ireland, while Scotland and Wales have their own analogous taxes. The future of stamp duty has garnered attention, with the Institute for Fiscal Studies labeling it as potentially economically damaging. Recently, Kemi Badenoch indicated that a future Conservative government may consider abolishing stamp duty for primary residences.
Currently, the stamp duty rates in England are structured as follows: for properties valued up to £125,000, the tax rate is 0%, which increases in tiers for higher-value properties. First-time buyers benefit from a higher threshold of £300,000, provided the property is less than £500,000. Between September 2022 and March 2025, these buyers can purchase homes valued up to £425,000 without incurring stamp duty. Additionally, an extra 5% applies to individuals who already own a property and are purchasing another worth at least £40,000.
In Scotland, the Land and Buildings Transaction Tax (LBTT) applies, where the first £145,000 is also taxed at a rate of 0%, but properties between £325,001 and £750,000 are taxed at 10%. An Additional Dwelling Supplement of 8% is charged if the buyer already owns a property worth £40,000 or more. The Scottish government has announced a review of the LBTT rules set to begin in 2025.
Wales implements the Land Transaction Tax (LTT), with standard rates starting at 0% for properties priced up to £180,000. Properties purchased at £400,001 and above are subject to rates as high as 15% for prices reaching £1.5 million. Notably, there is no relief for first-time buyers in Wales.
Payments of stamp duty, LBTT, and LTT are commonly facilitated through solicitors or can be completed online or via banks, and buyers may sometimes add the amounts to their mortgages.
Source: https://www.bbc.com/news/articles/cdxevy07g0do?at_medium=RSS&at_campaign=rss