Stamp Duty Explained
How stamp duty works and what you might pay.
What is Stamp Duty?
Stamp Duty Land Tax (SDLT) is a tax you pay when you buy property in England or Northern Ireland. Wales has Land Transaction Tax and Scotland has Land and Buildings Transaction Tax, with their own rates.
What you pay depends on the price, and on whether you are a first-time buyer or buying an additional property.
Current Rates
For homes in England and Northern Ireland: 0% up to £125,000, 2% from £125,001 to £250,000, 5% from £250,001 to £925,000, 10% from £925,001 to £1.5m, and 12% above £1.5m.
First-Time Buyers
If everyone buying is a first-time buyer and the price is £500,000 or less, you pay no stamp duty up to £300,000 and 5% on the portion between £300,001 and £500,000. Above £500,000 there is no relief, and standard rates apply to the whole price.
Additional Properties
An extra 5% is added to every band if you will own more than one property after the purchase.
💡 Tips
- •Use a stamp duty calculator for an exact figure
- •The return and payment are due within 14 days of completion, and your solicitor usually handles this
- •Buying in Wales? Check the Land Transaction Tax rates on the Welsh Revenue Authority website