- Flickr: Houses on UK Money
Stamp duty is a percentage paid by a home buyer, calculated off the value of the property. The threshold recently changed in 2011 and now stands at 0% at properties below £125,000, 1% on properties between £125,000 and £250,000, 3% between £250,000 and £500,000 and 4% for properties valued at more than £500,000. However, new home buyers who purchase their property in 2010 can secure a two year stamp relief period on properties up to £250,000; this threshold will change again in 2012 and the relief period will no longer apply.
Stamp duty is normally paid on top of the price you pay for the property. It covers administration fees and the transfer of deeds to a new homeowner, but the thresholds can be quite confusing for some homeowners. Unfortunately, even if you are £1 over the £125,000 limit, you will be subject to stamp duty tax. However, you can use a stamp duty calculator based on 2011 rates to find out how much you need to pay.
Stamp Duty Calculator for 2011
To find out how much you need to pay you'll have to find out which band you're in from the rates above. This will tell you the percentage you have to pay in stamp duty - as example, we'll use a property value of £256,000. The stamp duty tax on this is 3%, according to 2011 rates. To work out the exact amount of stamp duty you have to pay you would use:
256000 x 0.3 = 7680.
The amount of stamp duty would then be £7680. Added to the actual value of the home you would pay a total of £263,630 (stamp duty and house value added together).
Online Stamp Duty Calculator for 2011 Rates
If you prefer to use an online calculator to find out how much stamp duty you can pay, try the following online tools:
This is Money (http://www.thisismoney.co.uk/stamp-duty-homes-calculator)
Stamp Duty Calculator (http://www.stampdutycalculator.org.uk/)
Money Saving Expert (http://www.moneysavingexpert.com/mortgages/stamp-duty)