stamp duty question regarding the £40k threshold

kevinqq

Stamp Duty in Scotland

This site doesn't seem to take the £40k off the calculation.   I put in a £140k house as a 2nd home, expecting it to calculate the 8% stamp duty off £100k therefore being £8k. but it comes back with £11,200.  Why is this?

kevinqq

hello i've just answered my own question.  So if it's £39.999 there is no stamp duty.  If £40k the 8% kicks in.

So it's not a case of getting the 1st £40k free.   Sorry for a stupid question. 

saajan_12

Correct - this is a cliffedge boundary which is usually to be avoided in tax banding. However I suppose in this case its really designed more like a "de minimis" exemption rather than a progressive band. 

kevinqq

saajan_12 said:

Correct - this is a cliffedge boundary which is usually to be avoided in tax banding. However I suppose in this case its really designed more like a "de minimis" exemption rather than a progressive band. 

yes. Also you will struggle to find a "house" that's under £40k.