According to Which, stamp duty land tax is a United Kingdom tax that is payable upon the purchase of any residential property that costs more than £125,000. As of 2014, stamp duty rates vary from 1 to 7 percent, depending on the value of the property.Continue Reading
Which explains that stamp duty is a tax on land and property transactions. Upon the purchase of a property that costs more than £125,000, the stamp duty is usually due within 30 days of the "effective date," which is normally the date of completion. As of 2014, for properties sold for between £125,000 and £250,000, stamp duty is set at 1 percent. The rate rises incrementally to 7 percent for properties costing over £2 million.
The Money Advice Service advises that there are very few exemptions to having to pay stamp duty. However, the tax is waived for people who transfer a portion of their home's value to a spouse or partner as a result of divorce or separation.Learn more about Taxes