What are the new stamp duty rates?
The amount of stamp duty you pay depends on the cost of the property.
Chancellor Kwasi Kwarteng announced the permanent changes as part of the government’s mini-budget. They come into effect straight away.
The price at which stamp duty is paid was doubled from £125,000 to £250,000.
The rates are now:
0%: £0 – £250,000 (£425,000 for first time buyers)
5%: £250,000 – £925,000
10%: £925,000 – £1,500,000
12%: £1,500,000+
The chancellor added that discounted stamp duty for first-time buyers will now apply to properties costing up to £625,000 – up from £500,000.
How does stamp duty work on buy-to-let properties?
If you’re buying an additional property, such as a buy-to-let, landlords will have to pay an extra 3% in stamp duty on top of the rates for each band.
So on a buy-to-let up to £250,000 landlords will pay 3%.
On a property worth between £250,000 to £925,000 stamp duty will be 8%, while on a property valued between £925,001 and £1.5million landlords will pay 13%
