Energy minister, Claire Perry told the BBC last week that she is interested in the idea of lowering stamp duty on houses that have been made more energy efficient. It is part of a plan to provide incentives for those who insulate their homes or implement other energy saving measures in order to help the government cut household emissions to meet climate change laws set out in the Climate Change Act.
What is Stamp Duty?
Stamp Duty Land Tax (SDLT) is a tax which must be paid when you buy a residential property which costs over £125,000 or a commercial property over £150,000 in England, Wales or Northern Ireland.
How Much Will I Pay?
The amount of SDLT you pay will depend on the purchase price of your property. For residential properties, it consists of:
0% - Up to £125,000
2% - The next £125,000 (the portion from £125,001 to £250,000)
5% - The next £675,000 (the portion from £250,001 to £925,000)
10% - The next £575,000 (the portion from £925,001 to £1.5 million)
12% - The remaining amount (above £1.5 million)
For example if you were to purchase a property costing £400,000, you would pay:
0% on the first £125,000 = £0
2% on the next £125,000 = £2500
5% on the remaining £150,000 = £7,500
£10,000 in total
There are different rates of Stamp Duty for commercial, buy to let properties and second homes
Speak to The Mortgage Hut about Property Purchase Costs
If you’re considering moving home or purchasing a property but are unsure about the costs - speak to one of our friendly mortgage advisers at The Mortgage Hut. In addition to finding you the right mortgage deal, we can help you understand and calculate the costs of purchasing a house including stamp duty, solicitor fees, any extra costs relating to your mortgage.