Stamp Duty: Your Guide

When buying a house there are extra costs in addition to the deposit and mortgage – one of which is Stamp Duty Land Tax (SDLT) in England and Northern Ireland.

Stamp Duty is a lump sum tax that you have to pay on completion of a residential property purchase.

How much is stamp duty?

Stamp Duty figures changed in September 2022, when chancellor Kwasi Kwarteng announced a permanent cut to Stamp Duty.

He announced that there will be no SDLT to pay on properties costing up to £250,000. Previous rates still apply to homes costing more than this, resulting in the bands changing to:

  • Up to and including £250,000 – 0%
  • Over £250,000 to £925,000 – 5%
  • Over £925,000 to £1.5 million – 10%
  • Over £1.5 million – 12%

First-time buyers will not have to pay any Stamp Duty on properties costing up £425,000.

For a second home, you'll pay an additional 3% on the standard rates.

Your conveyancer should discuss Stamp Duty with you and if your circumstances are particularly complex you may wish to consult a specialist tax advisor.

Wales and Scotland have different taxes to pay on property purchases.

In Wales, Land Transaction Tax costs:

  • Up to and including £180,000 – 0%
  • Over £180,000 to £250,000 – 3.5%
  • Over £250,000 to £400,000 – 5%
  • Over £400,000 to £750,000 – 7.5%
  • Over £750,000 to £1.5 million – 10%
  • Over £1.5 million – 12%

In Scotland Land and Buildings Transaction Tax is payable. As in the other nations, it is a banded system. The bands are:

  • Up to £145,000 purchase price – 0%
  • Over £145,000 to £250,000 – 2%
  • Over £250,000 to £325,000 – 5%
  • Over £325,000 to £750,000 – 10%
  • Over £750,000 – 12%

How and when you pay Stamp Duty and other taxes

  • UK and Northern Ireland
    Once you have completed the purchase of your property you have 30 days to complete an SDLT return for HMRC and pay the tax.
  • In Scotland you pay LBTT to Scotland Revenue within 30 days of completion.
  • Welsh residents should pay LTT to the Welsh Revenue Authority within 30 days after the day of completion.

Your conveyancer can deal with this for you to save you the added stress. This should be done on the day of completion and the amount payable should be shown in your conveyancer’s completion statement to you.

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Note: First4Lawyers offers this information as guidance, not advice. Before taking any action, you should seek professional assistance tailored to your personal circumstances and not rely on First4Lawyers’ information alone.

All details and pricing are correct at time of last update. First4Lawyers and their partners are not tax advisors and we recommend you seek appropriate independent financial advice before making any decisions that relate to tax and property.

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