Stamp Duty

If you’re looking to buy a residential property or piece of land in England or Northern Ireland, you’ll need to pay Stamp Duty Land Tax (SDLT) if your purchase exceeds the £250,000 threshold. The Stamp Duty rates, as outlined in the mini-budget on September 23, 2022, will remain unchanged until March 31, 2025.

The amount you owe is determined by Stamp Duty bands, with the tax calculated on the portion of the property price within each band. A Stamp Duty calculator can help estimate your tax liability, whether you’re a first-time buyer, moving home, or purchasing an additional property. Please note, the calculator is a guide and you should verify the exact amount with your accountant or solicitor.

What is Stamp Duty?

Stamp Duty Land Tax (SDLT) is a tax applicable to property purchases in England or Northern Ireland, but it only applies if the property’s price exceeds a certain threshold. You’ll need to pay Stamp Duty on residential properties costing more than £250,000, unless you qualify for first-time buyer’s relief.

Eligible first-time buyers can avoid paying Stamp Duty on properties up to £425,000 and receive a discounted rate for properties priced up to £625,000. If you’re purchasing a property in Scotland, you’ll pay Land and Buildings Transaction Tax (LBTT), and in Wales, you’ll pay Land Transaction Tax (LTT) instead of Stamp Duty.

How much is Stamp Duty?

Stamp Duty is assessed based on various rate bands, with the tax applied to the portion of the property price that falls within each band. For the purchase of a main property costing more than £250,000, you will need to pay Stamp Duty, unless you are a first-time buyer.

The Stamp Duty rates vary depending on the location within the UK: England and Northern Ireland share the same rates, while Scotland and Wales have different rates.

When do you pay Stamp Duty?

You must file a Stamp Duty Land Tax (SDLT) return and pay any SDLT owed within 14 days of the property purchase. Failure to submit the return and pay the tax within this timeframe may result in penalties and interest charges from HMRC.