Stamp Duty Land Tax, to give its official title, must be paid if property or land is purchased over a certain value. A different tax called Land and Buildings Transaction tax applies in Scotland.
Stamp Duty is paid when you buy or are transferred, freehold or leasehold property.
For a freehold property:
- Nothing is paid for the first £125,000.
- 2% is paid on the next £125,000.
- 5% is paid on the next £675,000.
- 10% is paid on the next £575,000.
- 12% is paid on anything above £1.5million.
Different rules apply to leaseholds.