Moving & Removals

It’s the question every homeowner and prospective buyer has been Googling recently, so we thought it time we put everything you need right in one place. All you have to do now is spend a couple of minutes working through the following wise words and you’ll have the answers to all the basics you need. Enjoy! 


How much is stamp duty normally?

When a property changes hands a duty is levied on it and it’s called stamp duty. While it’s been around for centuries to raise more tax revenue for the government, it’s a hot topic right now because of the impact it can have on your buying power. If you buy a home then you will have to pay anywhere from 2-12% of the price above £125,000 as stamp duty. This is on top of all the other fees and charges that come with buying a home. 

The buyer is always the one who pays the stamp duty, so avoid any talk of paying a percentage of it if you’re the seller.

You will also hear a lot of the time that a solicitor will pay it on your behalf. Don’t make the mistake of budgeting for them to pay the actual amount for you — this is just a legal arrangement where they transfer your stamp duty payment on your behalf.

The duty is always payable by the buyer and has to be budgeted for accordingly. With a little forward planning, it won’t be an issue. 


Who pays stamp duty on a property?

When you want to know how much is stamp duty going to be on your property, you need to first factor in the type of property you’re buying. To keep things simple we’ll cut straight to the chase and let you know that regardless of whether it’s for residential purposes or not, if you’re buying property in the UK, stamp duty applies. 

You’ll likely come across all sorts of ‘experts’ online who will make promises of avoiding stamp duty by changing the designation of the property to be purchased.

These types of avoidance schemes are based on the common misconception that stamp duty only applies to residential addresses where you intend to live.

In fact, if you’re buying to let, or buying for business purposes, stamp duty applies as well. If in doubt, speak to an expert or your solicitor who will be able to talk you through the nuances of the system. 


How much is stamp duty on a new house?

The only effective way to try and do this is to attempt to talk down the price you’re paying for property.

Because stamp duty is calculated as a percentage of the price above £125,000, the lower you can get the asking price the less stamp duty you’ll have to pay.

You’ll also find that you can save a lot if you cross over into a lower tax bracket. This is something well worth considering when you get into the negotiating process and have to figure out how to counter offer the seller. 

New builds are a particularly interesting case because in this instance you will likely be dealing with nationwide developers, as opposed to individual sellers who are on a chain. If you can, try to get the developer to pay the stamp duty as part of the deal.

If you can’t get them to agree to it, there is no harm in trying! Just make sure you factor in the savings you’ll make from a lower asking price vs having the stamp duty paid by the developer so you know which avenue to really push hard down. 

Can you take a stamp duty holiday?

Stamp duty holidays are something of a hot topic, not least of all because the nationwide stamp duty holiday came to an end in October 2021. If you want to know how much stamp duty is going to be, and then you find that you’d like to spread the cost, speak to HMRC at the earliest opportunity. 

While it’s hard to cover every individual circumstance in a quick article, the most likely scenario is they either tell you to pay without delay, or they charge daily interest until the amount is settled. While this may not be what you want to hear, it does allow you to go into the process with realistic expectations that you can then use to reshape your budget and future spending plans accordingly. 


How much is stamp duty on 300k?

The property ladder in the UK has been getting progressively steeper and harder to climb over the past 20 years, with many young people struggling to buy until they approach middle age.

To help with this growing issue, the government has given a stamp duty relief system to any first time buyers whose home is less than £300,000

While this means that it will favour those living outside of London more due to the lower house prices, it’s a start in helping new buyers enter the market. The key point to note here is that it’s first time buyers that are being helped with this relief system.

If you want to buy a rental property for less than £300,000, you’ll be paying the same stamp duty rate as every other second time buyer. Just something to be aware of to make sure you get your numbers right for the initial budget by knowing how much is stamp duty. 


What are the stamp duty thresholds?

To keep things simple, all you have to do is take a look at these quick bullet points from the official Governament website: 

  • 2% on the portion £125,000 to £180,000
  • 3.5% on the portion  £180,000 to £250,000
  • 5% on the portion  £250,000 and £400,000
  • 7.5% on the portion  £400,000 and £750,000
  • 10% on the portion up to £1.5 million
  • 12% over and above £1.5 million


Stamp duty calculator

You might want to take a look here:

Before you start to calculate the stamp duty you might want to factor in other things which drive up the price:

  1. location
  2. specific post code
  3. catchment area
  4. speed of the market

This will give you a much better idea as to whether the deal you’re looking at represents value for money.

You may also want to put historical data to one side because the growth in the housing market since the 1980s has changed the perception of value for money and appreciation in terms of property value beyond all recognition. 


Final Thoughts

Now you know the basics you will have a much better way to answer the question of how much is stamp duty. Rather than getting dragged under by the details, add it as just another expense that you need to account for in your budgeting when you’re looking to buy a home or business premises.

If you think of it like this, you’ll have the time and space you need to make an informed decision and smarter next move after your house relocation.