Understanding Stamp Duty

Who is this page for?

This page is for first time buyers or people moving house who want to know more about who pays Stamp Duty, when, and how much.

In this article

Understanding Stamp Duty

Stamp Duty is a tax you might pay if you’re buying a new property or a house that costs over a certain amount.

From 23rd September 2022, if you are buying a residential property in England and Northern Ireland, you will not have to pay Stamp Duty on the first £250,000 of a property’s purchase price. These amounts differ if you are a first time buyer.

If you live in Wales, you’ll have to pay Land Transaction Tax (LTT) on houses that cost more than £225,000.

In Scotland, this is called Land and Buildings Transaction Tax (LBTT) and is paid on homes that cost more than £145,000 (£175,000 if you are a first time buyer).

Working out Stamp Duty

The amount of Stamp Duty you pay depends on the price of the property you buy.

From 23rd September 2022 if you are buying a residential property in England & Northern Ireland you’ll pay:

Property value

Stamp Duty paid

Up to £250,000

0%

£250,001 - £925,000

5%

£925,001 - £1.5m

10%

£1.5m+

12%

Who pays Stamp Duty?

Anyone buying a property or piece of land worth over a certain amount has to pay Stamp Duty in England and Northern Ireland.

This could be when buying your first property if it’s over a certain amount, a second home or when you’re moving house.

Do first-time buyers pay Stamp Duty?

If you're a first time buyer in England and Northern Ireland, you will not have to pay Stamp Duty on the first £425,000 of a property's purchase price and then 5% for any amount above £425,000 up to £625,000.

If the purchase price is over £625,000, you will pay Stamp Duty at the home mover rate.

When do you pay Stamp Duty?

When buying a house in England or Northern Ireland, you have 14 days from the completion date to pay Stamp Duty.

This law came into effect in March 2019. Previously it was 30 days. Late payments can result in a fine and added interest. 

Buy to Let Stamp Duty

From 23rd September 2022 In England and Northern Ireland, you'll pay a 3% Stamp Duty surcharge on any Buy to Let property worth £40,000 or more.

There are also higher rates for Buy to Let properties in Scotland and Wales.

Proportion of property value Stamp Duty paid

Up to £250,000

3%

£250,001 - £925,000

8%

£925,001 - £1.5m

13%

£1.5m+

15%


Find out more about Buy to Let mortgages.

The content on this page is for reference and does not constitute finance advice.

For impartial financial advice, we recommend government bodies like the MoneyHelper.

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