Mortgages - Stamp Duty

 
 
 

What is stamp duty?
How do I pay it?
Is there no way I can avoid paying stamp duty?

What is stamp duty?

Stamp duty is considered by many to be a hugely unfair tax and by many others a necessity to ensure public services are funded. Whatever your view, stamp duty is a legal requirement and must be paid. Stamp duty kicks in a 1% of the value on properties over £125,000 with higher percentages for properties over £250,000. Top

How do I pay it?

You will need to pay it within 30 days of purchasing a property. The onus is on you, not the government, to remember to pay it. Usually a solicitor will take care of the process for you and you should remember to factor in their costs as well. Top

Is there no way I can avoid paying stamp duty?

If you buy a property in what is called a ‘disadvantaged area’ the 1% threshold is £150,000.

Since 1st October 2007 any house with zero carbon emissions has been exempt from stamp duty. To achieve this, the home will have to have zero carbon emissions for energy use. The fabric of the home will be required to reach a very high energy efficiency standard and to be able to provide onsite renewable heat and power. This exemption, however, is only available for the next five years. Top

 
     
 
 

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THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.

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