Question 6
Will I have to pay Stamp Duty and what will it cost?
Stamp Duty is a tax which is payable only by the Buyer.
Where the purchase price is £125,000 or less, the buyer will not have to pay Stamp Duty. Stamp Duty needs to be paid by buyers where the purchase price is over £125,000. Stamp Duty must be paid on settlement of the purchase and we will ask you to let us have enough funds to meet the Stamp Duty shortly before the settlement date and request that you sign a form called an SDLT for Stamp Duty purposes.
When we receive the Disposition at settlement, we will then send the signed SDLT Form down to the Inland Revenue Stamp Office. The Stamp Office will check the form and ensure that the right Stamp Duty has been paid to them and then return a reciept to us. The Disposition can then be registered at Registers of Scotland.
Following the Budget on 24th March 2010 it has been announced that for a period of two years from 25th March 2010 first time buyers shall be exempt from the payment of Stamp Duty where they purchase a residential property for a price between £125,000 and £250,000.
For more information on whether or not you may be entitled to this exemption please contact Karen Fulton or Karen Lang directly by phone, fax or e-mail.
The rate of Stamp Duty will vary with the purchase price and the current rates are as follows: -
| Purchase Price | Rate of Duty |
|---|---|
| £125,001 – £250,000 | 1% of the purchase price |
| £250,001 – £500,000 | 3% of the purchase price |
| £500,001 – £1,000,000 | 4% of the purchase price |
| £1,000,001 and over+ | 5% of the purchase price |
+For settelments on or after 6th April 2011
