Final answer:
The SDLT for a house bought at £125,000 in the UK would be zero, as it falls within the nil rate band. This calculation assumes that the buyer does not own any additional properties and is not a first-time buyer, as different rates or reliefs may apply.
Step-by-step explanation:
The question pertains to Stamp Duty Land Tax (SDLT) which is a tax that buyers pay on property purchases in the UK. Given that the house's purchase price is £125,000, we can calculate its SDLT based on the applicable rates.
In the UK, SDLT rates are tiered and depend on the property's price. As a general rule, for residential properties, there is no SDLT to pay on the first £125,000 (the 'nil rate band'). If a house is bought for £125,000, which falls within this nil rate band, there should be no SDLT payable. However, SDLT calculations can change if the buyer owns additional properties or if they are a first-time buyer since there may be different rates or reliefs that apply. Always refer to the most recent tax guidelines or consult a tax specialist for accurate calculations.
Freda and Ben have also been involved in property transactions to compare with the information provided. Freda's house has appreciated significantly, and Ben's down payment and value increase provide context about equity and property investment appreciation.