| The majority of people in the UK buying a new home | | | | Are there any exemptions to Stamp Duty? |
| will be required to pay stamp duty on the purchase. | | | | In an attempt to assist first time buyers and to |
| What is stamp duty, how is it calculated and what | | | | account for rising property prices the lower boundary |
| impact does it have on the UK housing market? | | | | for stamp duty has increased twice in the last |
| What is Stamp Duty? | | | | decade. Currently people paying less than |
| The origins of stamp duty go all the way back to | | | | £125,000 for a property will not be required to pay |
| 1694 when it was brought in to pay for the war | | | | stamp duty. There are also exemptions for some |
| against France. Stamp duty is actually the oldest tax | | | | properties being bought in areas that the |
| administered by the Inland Revenue. The current | | | | Government considers to be disadvantaged. |
| Stamp Duty Land Tax was introduced in 2003. | | | | How does Stamp Duty affect the UK property |
| Stamp duty covers purchases of all types of | | | | market? |
| property and is paid by the buyer. The actual | | | | As property prices have increased so has the |
| amount paid varies according to the value of the | | | | amount that UK home buyers are paying in stamp |
| property being bought. | | | | duty. In the last year the average stamp duty paid |
| How is Stamp Duty calculated? | | | | was £4,950. The comparable figure for ten years |
| Stamp duty is levied at a percentage of the value of | | | | ago was just over £700 which means that average |
| the property. For properties costing between | | | | stamp duty payments have increased by nearly |
| £125,000 and £250,000 a 1% rate of tax is | | | | 600% in the last decade. There is some concern |
| charged. For example if the purchase price of a | | | | that the rising cost of stamp duty is having a |
| property is £200,000 the buyer will be required to | | | | negative effect on the UK housing market. This |
| pay £2000 in stamp duty. For properties sold for | | | | concern has been acknowledge by the government |
| between £250,000 and £500,000 stamp duty is | | | | who have recently announced a one year 'break' on |
| set at 3% with a 4% rate for all properties costing | | | | stamp duty payments for all property costing less |
| over half a million pounds. | | | | than £150,000. |