What is Stamp Duty?
Stamp Duty Land Tax, often referred to as SDLT or Stamp Duty, is a tax due on all property purchases, new or pre-owned, in England. If you are buying a residential property, there are different rates of SDLT if you are a first time buyer, are buying an additional property or are not a UK resident.
The SDLT threshold for residential properties is £250,000. If you buy a property for less than the threshold, there's no SDLT to pay.
Tax rates differ between England and Wales. You must pay Land Transaction Tax (LTT) if you buy a property or land over a certain price threshold in Wales. The LTT threshold is at £225,000 for residential properties (if you do not own another property).
How do you pay Stamp Duty?
Your solicitor or conveyancer is normally the person who calculates and pays your Stamp Duty on your behalf, however you can pay HMRC directly if you so choose. All Stamp Duty must be paid within a maximum of 14 days after completion.
Rates on your first home
First-time buyers do not pay Stamp Duty on the first £425,000 of their home. Therefore, if you buy your first home for less than this, you will not pay any Stamp Duty.
If you buy your home for between £425,001 and £625,000, you’ll only pay 5% on that portion of the purchase price. The standard Stamp Duty rates apply to properties valued over £625,000.
Home mover rates
When you buy a property you're planning to live in (and you've owned a property before), you'll pay Stamp Duty on each portion of the property price.
Rates on a second home
Don't forget if you’re purchasing a second home or have the intention of renting your newly-purchased property out, then higher rates of Stamp Duty are typically imposed. This usually means that an extra rate of 3% is added to the standard Stamp Duty tax bands.
As a first time buyer, do I need to pay Stamp Duty?
First-time buyers currently do not pay Stamp Duty on the first £425,000 of their home. First time buyers’ relief is available on properties up to £625,000.
What if I'm a non-UK resident, what does that mean for me?
As of the 1st April 2021, SDLT rates will be 2% higher for those purchasers of a residential property in England who are not UK residents.
How much is buy-to-let Stamp Duty?
Known as the Additional Stamp Duty Rate in England, it is a minimum 3% extra charge on top of the usual Stamp Duty bill.
How much is new build Stamp Duty?
It’s the same rate as any other home.
Are there any Stamp Duty Exemptions?
Yes, if you are a first time buyer, you do not pay Stamp Duty on the first £425,000 of your home. First time buyers’ relief is available on properties up to £625,000.
Step One
Finding your new home
Step Two
The buying process
Step Three
From exchange to completion
