Stamp Duty
Understanding Stamp Duty
Discover how Stamp Duty works, when it applies, and how much you may need to pay, so you can budget with confidence when buying your new home.
What is Stamp Duty?
Stamp Duty Land Tax, often simply called Stamp Duty or SDLT, is a tax you may need to pay when buying a home or land.How much you pay will depend on the price of your new home and your individual circumstances, including whether you’re a first-time buyer, moving home, or buying an additional property.
How does Stamp Duty work?
Stamp Duty is calculated using different price bands. This means you pay a different rate on each portion of the purchase price, rather than one rate on the full value of your new home.If the Peveril home you’re buying will be the only residential property you own, the standard Stamp Duty rates are currently:
Property Price | Stamp Duty Rate |
Up to £125,000 | 0% |
£125,001 to £250,000 | 2% |
£250,001 to £925,000 | 5% |
£925,001 to £1.5 million | 10% |
Over £1.5 million | 12% |
How could First Time Buyers’ Relief help you?
If you’re taking that exciting first step onto the property ladder, First Time Buyers’ Relief could reduce the amount of Stamp Duty you need to pay.If your new home costs £300,000, and you’re eligible for First Time Buyers’ Relief, you won’t pay any Stamp Duty.
Property price: £300,000
Stamp Duty payable: £0
Buying your first home for £450,000
Property Value | Stamp Duty Rate | Amount Payable |
First £300,00 | 0% | £0 |
Remaining £150,000 | 5% | £7,500 |
Total Stamp Duty Payable |
| £7,500 |
Stamp Duty when moving home
If you’re ready for your next move the standard Stamp Duty rates will usually apply.For example, if you purchase your new home for £450,000:
Property Value | Stamp Duty Rate | Amount Payable |
First £125,000 | 0% | £0 |
Next £125,000 | 2% | £2,500 |
Remaining £200,000 | 5% | £10,000 |
Total Stamp Duty Payable |
| £12,500 |
Find a home that’s right for you
At Peveril Homes, we’re committed to our customers and care about the homes we build and the communities we create.Our experienced team designs and builds quality homes to suit the changing needs of our customers, from those taking their first step onto the property ladder, to families looking for more space, and those searching for a home for their next chapter.
When you’re ready to make your move, our experienced Sales Executives are here to help you find a beautiful new home that feels right for you.
FAQs
Do I pay Stamp Duty on a new build home?
Yes. Stamp Duty generally applies to new build homes in the same way it does to existing properties. When you’re planning your move, it’s a good idea to include Stamp Duty alongside the other costs involved in buying your new home. Understanding your budget from the beginning can help make your journey to your new Peveril home feel that little bit simpler.
What if I’m buying an additional property?
If you’ll own more than one residential property after completing your purchase, higher Stamp Duty rates may apply. In England and Northern Ireland, Stamp Duty rates for additional residential properties are currently five percentage points higher than the standard residential rates. Everyone’s circumstances are different, so we recommend speaking to your solicitor to understand what this could mean for you.
When do I pay Stamp Duty?
If Stamp Duty is due on your new home, it will usually need to be paid to HM Revenue & Customs within 14 days of completing your purchase. In most cases, your solicitor will take care of the Stamp Duty return and arrange payment on your behalf. They’ll explain what you need to do and make sure you know when payment is required.
Where can I find a Stamp Duty calculator?
To find out how much Stamp Duty you may need to pay on your new home, you can use the Stamp Duty Land Tax calculator on the UK Government website.
Your solicitor will also be able to advise you on the amount payable and will take care of submitting your Stamp Duty return and arranging payment once your new home purchase is complete.
Helping you move
At Peveril Homes, we have a variety of purchasing options to suit a wide range of our customers.
Part Exchange
Make moving home straightforward with the Peveril Homes Part Exchange scheme.
Armed Forces incentives
We aim to make buying a Peveril home especially affordable for those working in our Armed Forces.
Speak to us today
Please use the form to ask us any questions or requests that you may have. We endeavour to get back to you as soon as possible.