Stamp duty is a form of taxation that is levied by the government when you buy specific items. Most people will pay stamp duty when they buy a property although you are also liable to pay this tax when buying shares in specific circumstances as well. It is thought that this kind of taxation dates back to medieval times in the UK.
If you buy a property that is worth more than £175,000 at the moment then you will have to pay stamp duty as part of the purchasing process. Most stamp duty payments will be sorted out by the solicitor who handles the purchase of the property for you.
At present the stamp duty rates for property are:
1. 0% for properties under £125,000
2. 1% for properties over £125,000 and under £250,000
3. 3% for properties over £250,000 and under £500,000
4. 4% for properties over £500,000 and under £1 millon
5. 5% for properties over £1 million and under £2 million
6. 7% for properties over £2 million
7. 15% for properties over £2 million bought by corporate bodies