What is the Stamp Duty Threshold for 2011?

Stamp duty has been a controversial topic for homeowners, with thresholds that create jumps of almost 3% more if you go over the threshold by just £1. New changes to 2011 threshold rates and further changes to rules for first time buyers have altered how much you'll pay in your stamp duty.

What is the Stamp Duty Threshold For?

Stamp duty is a percentage you pay on the value of your property. The price is paid by the purchaser of the house to cover a variety of costs, from admission fees to covering the transfer of documents.

What About First Time Buyers?

As an incentive for first time buyers the stamp duty threshold in 2010 was reduced for two years. However, these rates will no longer be valid after March 2012. First time buyers will be expected to pay normal stamp duty rates after this period.

What is the Current Stamp Duty Threshold?

For 2010/2011 the rate for first time buyers is (up to March 2012):

0% on properties under £250,000.

3% on properties from £250,001 to £500,000.

4% on properties over £500,000.

For previous homeowners the 2010/2011 threshold is:

0% on properties up to £125,000.

1% on properties from £125,001 to £250,000.

3% on properties from £250,001 to £500,000.

4% on properties from £500,001 to £1,000,000.

5% on properties over £1,000,000.

The amount you pay for stamp duty will depend on the value of the property at selling price. For example, if the property was purchased at £496,000 you would pay 3% of that value as stamp duty.

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