Stamp duty is a key consideration for anyone buying property in the North East. As the rules evolve, it’s essential for buyers and investors to understand how these costs might impact their finances in 2024. Here’s a look at what stamp duty is, how it works, and what you need to know about it this year.
What is Stamp Duty?
Stamp Duty Land Tax (SDLT) is a tax paid when purchasing property or land over a certain price in England and Northern Ireland. It applies to freehold and leasehold properties, as well as residential and non-residential purchases. The amount owed depends on the property price and the buyer’s circumstances, such as whether they are a first-time buyer or purchasing additional property.
2024 Stamp Duty Rates in the North East
For the North East, 2024 stamp duty rates follow the national structure. Rates vary depending on the value of the property:
• Up to £250,000 – 0%
• £250,001 to £925,000 – 5%
• £925,001 to £1.5 million – 10%
• Over £1.5 million – 12%
First-time buyers can benefit from a relief scheme, with no stamp duty on properties up to £425,000 and reduced rates up to £625,000.
Calculating Stamp Duty
To calculate stamp duty, apply the relevant rate to each portion of the property price that falls within the respective bands. For example, if you’re buying a home in Newcastle for £300,000, you’d pay 0% on the first £250,000 and 5% on the remaining £50,000, resulting in a total SDLT of £2,500.
Factors Affecting Stamp Duty in the North East
If you’re purchasing additional property, like a buy-to-let or second home, you’ll incur an extra 3% surcharge on top of the standard rates. This is important to budget for if you’re considering expanding your property portfolio in the North East.
Understanding stamp duty is crucial for North East buyers in 2024. It’s a significant cost, so knowing the rates, exemptions, and extra charges can help you plan financially and avoid surprises. Whether you’re a first-time buyer or a seasoned investor, Bradley Hall’s local expertise can help guide you through the property purchasing process. Reach out today to get personalised advice on your next property investment in the North East.
