What is Stamp Duty and how is it calculated?
Stamp duty is a tax paid by people buying property, although it varies slightly across the UK.
- In England and Northern Ireland buyers pay 'Stamp Duty Land Tax' (SDLT).
- In Scotland it's 'Land and Buildings Transaction Tax'.
- In Wales buyers pay 'Land Transaction Tax'.
The amount handed to the government depends on where you are in the UK, and the price of the property. SDLT applies if the property is over £250,000, and is also applicable to overseas buyers.
What are the stamp duty rates?
| Property price | Standard rate | Buy-to-let/second home rate |
|---|---|---|
| less than £250k | 0% | 3% |
| £250k to £925k | 5% | 8% |
| £925k to £1.5m | 10% | 13% |
| over £1.5m | 12% | 15% |
First time buyers
First-time buyers will not pay any stamp duty on property purchases below £425,000, with further relief available for transactions up to £625,000.
Buy to let & second homes
Stamp duty rates have increased for anyone purchasing an additional property, including buy-to-let investments and second homes, with a 3% surcharge applied on top of the normal SDLT rate.
How do I pay Stamp Duty?
Your solicitor will assist with Stamp Duty payments, which must be submitted to HMRC within 14 days of completion.