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.

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.

Until the 30th of September 2021, if you’re 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. This then reduces to £125,000 from the 1st October. 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 £180,000 from the 1st of July. 

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) from the 1st of April.

If your purchase isn't complete on or before these dates, you'll need to pay the tax at the usual rate, where it applies.

Working out Stamp Duty

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

Until 30th September 2021 if you are buying a residential property in England & Northern Ireland you’ll pay:

Property value

Stamp Duty paid

£0 - £250,000

0%

£250,001 - £925,000

5%

£925,001 - £1.5m

10%

£1.5m+

12%

For example, if you’re buying a home worth £600,000, you’d pay 5% Stamp Duty on £350,000. This means you’d pay £17,500 in Stamp Duty. 

These rates differ for first time buyers.


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?

From the 1st July 2021, if you're a first time buyer in England and Northern Ireland, you will not have to pay Stamp Duty on the first £300,000 of a property's purchase price and then 5% for any amount above £300,000 up to £500,000.

If the purchase price is over £500,000, you will pay Stamp Duty at the homemover 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

Until 30th September 2021, if you’re buying a Buy to Let property in England or Northern Ireland you’ll pay a 3% surcharge. You won’t pay any Stamp Duty on the first £40,000.

Property value Stamp Duty paid

£0 - £40,000

0%

£40,001 - £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 Money Advice Service.

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