Stamp Duty Tax.

Stamp Duty Tax is a form of tax which is charged when you purchase any property in England and Northen Ireland which costs more than £500,000. The rate at which the tax is charged is dependent on how much over the £500,000 threshold the property costs. It is important to note that this tax applies to both freehold and leasehold properties whether you pay outright or through a mortgage. It is also helpful to note that any second home you purchase over the value of £40,000 will be charged at a revised rate of 3%.

One thing to be aware of is if you buy a new main residence but there is a delay in selling your old home you may have to pay Stamp Duty Tax as if you are the owner of two properties. Despite this however, if you sell your old home within 3 years of moving into your new property you can claim a refund on the extra amount of tax you payed.