What are the stamp duty thresholds?

Posted on 2 October 2008

We are looking to buy a property for approximately £400-£450k but have trouble finding a buyer for our home which is on the market for £265k, a property we are keen on has now been offered as part exchange available and the developer has agreed to give us full asking price for our property on the basis we pay full price for his (£450k)as we were hoping to get a like for like reduction in asking price-about 10% we would be worse off than a straight forward selling and buying situation, however we have considered that we will not have any estate agents fees but not sure on what level stamp duty we would be charged, if it is only on the 'cash' difference then a part/ex would be ok for us, could you advise on the stamp duty payable by both parties and if there is any ways to reduce the level due? many thanks

 

Hi Matt

Thank you for you question.  Stamp duty is based on the purchase price of the property and payable via your solicitor.

Based on a purchase price of £450,000 (or £405,000 10% less) you will be looking at 3% stamp duty bill.  The bands are…
Nil – up to £175000
1% - £175001 - £250,000
3% - £250001- £500,000
4% - £500,001+

I hope this helps.  Good luck with your negotiations!

Bea

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