Hope I'm In The Right Section... Stamp Duty Starts At £125K

[jourdain2]

What I can't find out (probably because it is so obvious to everyone but me) is, is it chargeable on the total sum? E.g. If house bought is £126K is duty payable on £1K or on the whole £126K? We are trying to calculate what we can afford to offer for a house, so any help will be very welcome. Thanks in advance.

[Baldric]

https://www.moneyadviceservice.org.uk/en/articles/everything-you-need-to-know-about-stamp-duty?gclid=CLOy1PqQr8ECFRMatAodHngAiQ

[Baldric]

Useful Calculator

http://www.thisismoney.co.uk/money/mortgageshome/article-1633417/Stamp-duty-calculator-How-pay-property.html

[jourdain2]

Thanks, Baldric, that is dispiriting, but at least we know.

[factor-fiction]

Yes, it's a very odd tax- it seriously distorts the market with £125000 and £250000 acting as ceilings, meaning for example that there is a big cluster of sales at around £249000 and a big jump to around £300000 with very few houses in between

[SirOracle]

Just a reminder in case you are purchasing a house in Scotland. As from early next year stamp duty will be abolished,and replaced by a progressive tax based on the buying price of the property.

Yet another progression north of the border.

[jourdain2]

Thank you all. It is a tax which seriously needs rethinking. In order to avoid it we must offer the same amount as it would cost us - and we are a bit tight on budget. Only hope the vendor will understand - he's had no offers in a year so I am hoping he'll accept. If all goes well we can come back to UK p.d.q.. I'll let you know the result, but I am very grateful for your 'know-how'.

[jourdain2]

Sorry, that came out wrong - 'we will have to pay as much tax as we can offer over the original price demand' was nearer the mark.... still a bit fuzzy about it all.