If you’re buying a home in England or Northern Ireland you might have to pay Stamp Duty Land Tax (SDLT). You will pay no Stamp Duty if the amount you pay for your main home is under £250,000.
Stamp Duty rates as announced in the mini-budget on 23 September 2022 will remain until 31 March 2025.
What is Stamp Duty?
Stamp Duty is a tax you might have to pay if you buy a residential property or a piece of land in England or Northern Ireland over a certain price.
You will pay Stamp Duty on residential properties costing more than £250,000, unless you qualify for first-time buyers relief.
If you’re an eligible first-time buyer, you will pay no Stamp Duty on properties costing up to £425,000, and a discounted rate on property purchases up to £625,000.
This tax applies to both freehold and leasehold properties – whether you’re buying outright or with a mortgage.
If you’re buying a property in Scotland, you will pay Land and Buildings Transaction Tax (LBTT) and in Wales Land Transaction Tax (LTT) instead of Stamp Duty.
See our guides:
If you’re buying in Scotland – Land and Buildings Transaction Tax
If you’re buying in Wales – Land Transaction Tax
How much is Stamp Duty?
There are several rate bands for Stamp Duty.
The tax is calculated on the part of the property purchase price falling within each band.
You’ll pay Stamp Duty on the purchase of your main property costing more than £250,000, unless you’re a first-time buyer.
Example
For example, if you buy a house for £350,000, the Stamp Duty Land Tax you owe is calculated as follows:
0% on the first £250,000 = £0
5% on the portion from £250,001 and £350,000 = £5,000
Total SDLT = £5,000
Stamp Duty rates
| Minimum property purchase price | Maximum property purchase price | Stamp Duty rate |
|---|---|---|
|
£0 |
£250,000 |
0% |
|
£250,000 |
£925,000 |
5% |
|
£925,000 |
£1,500,000 |
10% |
|
Over £1.5 million |
– |
12% |
Stamp Duty on second homes
If you’re buying an additional property, such as a second home you’ll have to pay an extra 3% in Stamp Duty on top of the standard rates.
This increased rate applies to properties bought for £40,000 or more.
It doesn’t apply to caravans, mobile homes or houseboats.
| Minimum property purchase price | Maximum property purchase price | Stamp Duty rate (only applies only to the part of the property price falling within each band) |
|---|---|---|
|
£0 |
£250,000 |
3% |
|
£250,001 |
£925,000 |
8% |
|
£925,001 |
£1.5 million |
13% |
|
Over £1.5 million |
_ |
15% |
Stamp Duty relief for first-time buyers
If you’re a first-time buyer in England or Northern Ireland, you will pay no Stamp Duty on properties worth up to £425,000.
For properties costing up to £625,000, you will pay no Stamp Duty on the first £425,000. You’ll then pay Stamp Duty at the relevant rate of 5% on the remaining amount, up to £200,000.
If the property you’re buying is worth over £625,000, you will need to pay the standard rates of Stamp Duty and won’t qualify for first-time buyer’s relief.
First-time buyers
A person is classed as a first-time buyer if they’re purchasing their only or main residence and have never owned a freehold or have a leasehold interest in a residential property in the UK or abroad.
Stamp Duty for non-residents
If you’re a non-UK resident buying a residential property in England or Northern Ireland, you might have to pay an additional 2% on top of the existing Stamp Duty rates for properties costing more than £40,000.
Repayment of higher rates of Stamp Duty
If you buy a new main residence but there’s a delay in selling your previous main residence, you might have to pay the higher rates of Stamp Duty as you’ll now own two properties.
However if you sell your previous main home within three years of buying your new home you might be able to apply for a refund (Opens in a new window) of the higher SDLT rates you paid when you purchased your new home.
You can request a refund for the amount above the normal Stamp Duty rates if:
- you sell your previous main residence within three years, and
- you claim the refund within 12 months of the sale of your previous main residence, or within 12 months of the filing date of your SDLT tax return, whichever comes later.
When do you have to pay Stamp Duty?
You have 14 days to file a Stamp Duty Land Tax (SDLT) return and pay any SDLT due.
If you don’t submit a return and pay the tax within 14 days, HMRC might charge you penalties and interest.
How to pay Stamp Duty
Usually your solicitor will deal with the Stamp Duty return and any payment due for you, although you can do it yourself.
Either way, you’re responsible for making sure it’s all submitted on time.
You must still submit a return (unless exempt) even if you won’t need to pay any Stamp Duty.
When is Stamp Duty not payable?
There may be circumstances where Stamp Duty may not be payable. Some examples might include:
- Transfer of property in pursuance of a court order during separation, divorce or dissolution are generally exempt. If a couple agree to separate permanently without getting a court order they will be treated for SDLT purposes as an unmarried couple.
- Property left under the terms of a will may not be subject to SDLT provided no other consideration is given. There is usually no requirement to inform HRMC in this case.
- If you gift your home to someone else they won’t have to pay SDLT on the market value of the property provided there is no outstanding mortgage on the property. If you take over some or all of an existing mortgage, SDLT may be payable on the value of the mortgage over the relevant SDLT threshold.
