When buying a new home, you’ll likely have to pay Stamp Duty Land Tax (SDLT). Here’s a simple guide to how it works, when it applies, how much you’ll need to pay, and how to pay it. Note, this article is for individuals only, not for companies purchasing properties.
What is stamp duty?
Stamp Duty Land Tax, commonly known as stamp duty, is a tax on property or land purchases in England and Northern Ireland. For property purchases in Scotland, you’ll pay Land and Building Transaction Tax (LBTT), and in Wales, you’ll pay Land Transaction Tax (LTT).
When does stamp duty apply?
You might need to pay stamp duty if you:
- Buy a freehold property
- Buy a new or existing leasehold
- Are transferred land or property in exchange for payment (e.g., taking over a mortgage)
Exemptions
You won’t have to pay stamp duty if:
- The property value is below the stamp duty threshold
- You’re a first-time buyer purchasing a property under £425,000
How much stamp duty do I need to pay?
The amount of stamp duty depends on the purchase price and other factors, such as residency status and ownership of additional properties. Current rates are:
| Purchase Price | Main Property Rate | Additional Property Rate |
| Up to £250,000 | 0% | 3% |
| Over £250,000 to £925,000 | 5% | 8% |
| Over £925,000 to £1.5 million | 10% | 13% |
| Over £1.5 million | 12% | 15% |
Non-UK residents pay an additional 2% on top of these rates.
How to pay stamp duty
Your solicitor or conveyancer will usually file your SDLT return and handle the payment. This fee can be included in their services or paid separately. You can also file and pay the tax yourself online.
When do I have to pay?
You must send your SDLT return and pay the tax within 14 days of completing your property purchase.
For more details, you can use our stamp duty calculator or speak a mortgage adviser. If your situation is complex, such as buying multiple properties or purchasing as a company, it is always wise to get independent tax and legal advice.
For any other questions or mortgage advice, feel free to get in touch with us. We’re always here to help.
Important information
Your home may be repossessed if you do not keep up repayments on your mortgage.
There may be a fee for mortgage advice. The actual amount will depend upon your circumstances.
The fee is up to 1% but a typical fee is £598.
