Stamp duty rates
For purchases of land such as houses, the current rates in the U.K. are as follows (last checked 25th July 2008)
Current stamp duty rates in the UK are as follows
Purchase price up to £125,000 is charged at 0%
Purchase price from £125,001 - £250,000 is charged at 1%
Purchase price from £250,001 - £500,000 is charged at 3%
Purchase price over £500,000 is charged at 4%
Stamp duty rates on properties is charged to the buyer of the said property on the following: buying pieces of land to build or to leave as land, buying homes and commercial properties and assignments and grants of leases.
The stamp duty is calculated by the amount of money paid to the seller of the property or the land. The stamp duty is always paid by the buyer of the property or land, not by the seller.
The stamp duty land tax (SDLT) is paid by you signing a land transaction form given to you by your solicitor or a licensed conveyance. The return form is called the SDLT1 form and you can find it on the HM Revenues and Customs website or ring the order line to get a copy direct.
If you are the buyer or the tenant, you are the one who is legally responsible to return the stamp duty returns form and for the payment of the tax assigned. In normal circumstances, your solicitor will handle all of this for you when you complete on buying the proposed property. When the stamp duty has been successfully paid and completed, you will receive a receipt for this transaction and you will get a certificate stating you have paid the stamp duty on the property or land. This certificate is called the SDLT5 certificate and proves you have successfully completed the transaction.
