Stamp duty is a tax on the sale of a property in order to cover the cost of processing the necessary documents during a sale. But who pays stamp duty when you sell a property?

There are a standard set of rules within the UK determining when, where and how much stamp duty should be paid during a transition of property ownership. One thing stays consistent throughout – stamp duty is always paid by the buyer. Even if you are selling your property to a property investment group, like Olivia Rose Estates, the company will still be liable to pay the Stamp Duty!

How much is Stamp Duty?

In England and Northern Ireland you’re liable to pay Stamp Duty when you buy a residential property, or a piece of land, costing more than £125,000. The percentage paid is dependent on property value but is always increased if you are purchasing a second home. We have labelled the different percentage costs in a table below:

It is important to remember that you do not necessarily pay the bracketed percentage based on the final sale price. Instead, you will pay the percentage based on what value of your home lies within the bracket. For instance, if you buy a home that costs £150,000 as your primary residence, you will pay 0% stamp duty for the first £125,000, and then 2% on the final £25,000 (equivalent to £500). This is a low-cost example but the price can become quite significant as property value increases.

 Can you avoid Stamp Duty?

Luckily, there are certain scenarios that permit a buyer to escape the payment of Stamp Duty. Regardless of your personal situation, you will never pay Stamp Duty on a home up to the value of £125,000 if it is your primary residence. The same is true if you are purchasing a secondary residence of value up to £40,000.

Smart buyers will take this into account during sale negotiations. If the home you are purchasing is valued at slightly over the band separating the percentage brackets, you can always ask the sellers or estate agent for a slight reduction in order to lower the Stamp Duty that needs to be paid. You will need to ensure that it’s economically beneficial to do this by comparing the savings in Stamp Duty costs to the required reduction of house value. Although they cannot always avoid it, first time buyers are subject to more relaxed Stamp Duty regulations. They are allowed to purchase a property up to £300,000 in value without paying any fees.

Does everyone pay Stamp Duty?

There are two situations in which an individual may be able to escape the extra tax payment. The first occurs if the homeowner is going through a divorce as one party is allowed to transfer full ownership to the other. The second scenario occurs when property is transferred through a will or given as a gift. In both scenarios, you are exempt from paying any Stamp Duty at all.

Are you looking for somebody to buy your house without the hassle, and cost, associated with a traditional sale process? Olivia Rose Estates offer a fast and efficient service, meaning you can sell your house to us in a timeframe that suits you.

There will be no legal fees, no survey fees and no commission.

We are here to help you sell your house fast. We can offer a guaranteed cash purchase for your property in a timescale that suits you. It could be a couple of weeks, or even just a few days. You no longer have to pay estate agents fees and deal with the potential long delays of a traditional sale process. It is not uncommon for house sales and purchases to fall through due to broken chains or mortgages not being approved at the last minute.

We will help guide you through the process of selling your home, whatever your reason for selling. From the initial valuation to the final completion date, rest assured you are being guided by trusted property professionals who are here to help you get the most out of your house sale and ensure you have a hassle-free experience.