The following provides a breakdown of typical costs incurred when purchasing property in the UK. These costs are purely illustrative and specific costs may vary.
In the example below, we have used a purchase price of £500,000; the Stamp Duty Land Tax paid has been calculated based on the stamp duty reforms on residential property as per the Chancellor of the Exchequers’ Autumn 2014 Statement which became effective on 4th December 2014 as illustrated in the table below.
|Purchase Price||£ 500,000|
|Stamp Duty Land Tax (3%)||£ 15,000|
|Cai-Capital Fee (1.5%)||£ 7,500 + VAT (20%)|
|Solicitors Fee||£ 1,000 + VAT (20%)|
|Land Registry Fee (to transfer title)||£ 250 + VAT (20%)|
|Bank Transfer Fee||£ 50|
|Property Searches||£ 280|
|VAT TOTAL||£ 1,750|
Stamp Duty Land Tax
(Rates correct as of 4th December 2014)
When purchasing property in the United Kingdom (UK), you must pay Stamp Duty Land Tax (SDLT). The level of SDLT depends on the purchase price of the property. The table below illustrates the SDLT Rate for residential properties and is effective from 4th December 2014. Under the previous system, the SDLT payable would have been at a single rate on the entire property price. The system in place from 4th December 2014 calculates the rate of SDLT on the part of the property price within each tax band (an incremental range).
Other SDLT Rates apply in respect of Corporate Bodies and Residential Leases and we recommend checking the official UK Government website for further details.
|Purchase Price/Lease Premium or Transfer Value||SDLT Rate|
|Up to £125,000||0%|
|£125,001 to £250,000||2%|
|£250,001 to £925,000||5%|
|£925,001 to £1.5 million||10%|
|Over £1.5 million||12%|