What is stamp duty?
Stamp duty land tax (SDLT) is a fixed sum of money paid to the government upon purchase of property or land.
For a limited time, in England and Northern Ireland, residential properties worth more than £250,000 require stamp duty to be paid upon purchase of the home (there is no stamp duty payable on homes priced less than this). This is a higher threshold than previous years, thanks to the current 'stamp duty holiday'. For first-time buyers, this limit is increased further to £425,000.
How much tax is due depends on the property price.
In Wales the tax is known as the land transaction tax (LTT) and in Scotland as the land and buildings transaction tax (LBTT).
What is the 'stamp duty holiday'?
In September 2022, the Government announced a temporary reduction in stamp duty in England, meaning you’ll pay less or no stamp duty on new homes of a certain value.
On 31st March 2025, this temporary reduction will come to an end, meaning that you’re likely to pay significantly more SDLT after this date.
However, if you compete before 31st March 2025, you can still benefit from the stamp duty holiday and save thousands of pounds on your new Bellway home.
Who pays stamp duty?
Stamp duty applies to buyers who fall under a specific set of circumstances, usually based on the price of a property. However, there are exceptions to this. If you’re a first-time buyer, you will only pay stamp duty if the home you’re purchasing is above the value of £425,000 in England, or £175,000 in Scotland. For buyers changing homes, any home in England over the value of £250,000 (£180,001 in Wales and £145,001 in Scotland) will require a stamp duty payment. If it’s an additional home that you’re purchasing, you’ll pay an even higher percentage of stamp duty – usually an additional 3% on top of the standard payment.
Is stamp duty different on new builds?
Stamp duty rates for new-build homes are no different from those of existing properties. However, the way they are calculated is different, due to the inclusion of land, property rate, and any optional extras you choose to have. Fixtures and fittings – such as a new kitchen – are included in this. This means that if your home costs £240,000 but you spend £12,000 on extras, your home will fall above the stamp duty threshold (if you’re not a first-time buyer). You will then pay 5% stamp duty on the £2,000 above £250,000 – which, in this case, would be £100.
When do you pay stamp duty?
A stamp duty land tax return must be filed and the tax paid – usually by your solicitor – within 14 days of completion on your new home. If you fail to meet this deadline you may be charged interest and penalties. If no stamp duty is due, you will still need to complete a return, unless the purchase price of the property is less than £40,000.
How much is stamp duty?
How much is stamp duty for first time buyers?
When buying your first home you will not pay stamp duty on property costing up to £425,000 in England and Northern Ireland, or £175,000 in Scotland. If the price is above this, the amount you pay will depend on where you live. There is no first-time buyer relief in Wales.
In England and Northern Ireland you will pay 5% stamp duty, on anything up to £625,000. Property costing more than £625,000 does not attract first-time buyer relief at all, so you will pay the tax due
In Scotland you will pay stamp duty on property costing more than £175,000, according to that country’s standard rates.
If you are buying a home with somebody else then this has to be a first home for both of you, in order for you to be considered first-time buyers.
Stamp duty example calculations for first-time buyers
First-time buyer buying a property under £300,000
Property value at point of purchase: £300,000
0% stamp duty to pay
First-time buyer buying a new property over £425,000
Property value at point of purchase: £500,000
0% stamp duty to pay up to £425,000
5% stamp duty to pay from £425,000 to £500,000 = £3,750
Total stamp duty payable = £3,750
Stamp duty for second time buyers
If you are buying a new home to live in, and you have owned a home before, you will pay stamp duty on any property costing more than £250,000. If you are buying a home with someone else and it is not your first home, you will be eligible to pay stamp duty even if they are a first-time buyer.
Stamp duty example calculations for second time buyers
Current homeowner buying a property under £250,000
Property value at point of purchase: £250,000
0% stamp duty to pay up to £250,000
Total stamp duty to pay = £0
Current homeowner buying a property over £250,000
Property value at point of purchase: £295,000
0% stamp duty to pay up to £250,000 of the value
5% stamp duty to pay from £250,000 to £295,000 = £2,250
Total stamp duty to pay = £2,250
Stamp duty threshold 2024
In England and Northern Ireland
Minimum
purchase price | Maximum
purchase price | Stamp Duty
rate |
|---|
| £0 | £250,000 | 0% |
| £251,001 | £925,000 | 5% |
| £925,001 | £1.5 million | 10% |
| Over £1.5 million | | 12% |
In Wales
Minimum
purchase price | Maximum
purchase price | Stamp Duty
rate |
|---|
| £0 | £180,000 | 0% |
| £180,001 | £250,000 | 3.5% |
| £250,001 | £400,000 | 5% |
| £400,001 | £750,000 | 7.5% |
| £750,001 | £1.5m | 10% |
| Over £1.5m | | 12% |
In Scotland
Minimum
purchase price | Maximum
purchase price | Stamp Duty
rate |
|---|
| £0 | £145,000 | 0% |
| £145,001 | £250,000 | 2% |
| £250,001 | £325,000 | 5% |
| £325,001 | £750,000 | 10% |
| £750,001 + | | 12% |
How much is stamp duty on a second home?
If you are buying a second home, or a buy-to-let property, then you will not pay stamp duty on the first £40,000. For everything above that amount you will pay an extra 5% above standard rates, so for England and Northern Ireland:
In England and Northern Ireland
Minimum
purchase price | Maximum
purchase price | Standard stamp
duty rate | With additional
property stamp
duty rate |
|---|
| £0 | £250,000 | 0% | 5% |
| £250,001 | £925,000 | 5% | 8% |
| £925,001 | £1.5m | 10% | 13% |
| £1.5m+ | | 12% | 15% |
Stamp Duty Frequently Asked Questions
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