If you’re buying a home in England or Northern Ireland costing more than £125,000, you’ll have to pay Stamp Duty Land Tax (SDLT) on your purchase. Use this guide to find out about how Stamp Duty works, including Stamp Duty for first-time buyers, rates for second homes and how it is paid.What is Stamp Duty?
In England and Northern Ireland you’re liable to pay Stamp Duty when you buy a residential property, or a piece of land, costing more than £125,000 (or more than £40,000 for second homes).This tax applies to both freehold and leasehold properties – whether you’re buying outright or with a mortgage.
If you’re buying a property in Scotland you will pay Land and Buildings Transaction Tax (LBTT) and in Wales Land Transaction Tax (LTT) instead of Stamp Duty.
If you’re buying in Scotland, find out more about Land and Buildings Transaction Tax (LBTT).
If you’re buying in Wales, find out more about Land Transaction Tax.
How much is Stamp Duty?
There are several rate bands for Stamp Duty.The tax is calculated on the part of the property purchase price
falling within each band.
- 0% on the first £125,000 = £0
- 2% on the next £125,000 = £2,500
- 5% on the final £25,000 = £1,250
| Minimum property purchase price | Maximum property purchase price | Stamp Duty rate (only applies only to the part of the property price falling within each band) |
|---|---|---|
| £0 | £125,000 | 0% |
| £125,001 | £250,000 | 2% |
| £250,001 | £925,000 | 5% |
| £925,001 | £1.5 million | 10% |
| Over £1.5 million | 12% |
Stamp Duty on second homes
Buyers of additional residential properties, such as second homes and buy-to-let properties, will have to pay an extra 3% in Stamp Duty on top of current rates for each band.This increased rate applies to properties bought for £40,000 or more.
It doesn’t apply to caravans, mobile homes or houseboats.
If you buy a new main residence but there’s a delay in selling your previous main residence, you’ll have to pay the higher Stamp Duty rates as you’ll now own two properties.
However, if you sell or give away your previous main home within 3 years of buying your new home you can apply for a refund of the higher SDLT rate part of your Stamp Duty bill.
You can request a refund for the amount above the normal Stamp Duty rates if:
- you sell your previous main residence within three years, and
- you claim the refund within three months of the sale of your previous main residence, or within 12 months of the filing date of your SDLT tax return, whichever comes later.
https://www.moneyadviceservice.org.uk/en/tools/house-buying/stamp-duty-calculator
Use our Stamp Duty calculator to find out how much you’ll pay.
For example, if you buy a house for £275,000, the Stamp Duty Land Tax (SDLT) you owe is calculated as follows:- 0% on the first £125,000 = £0
- 2% on the next £125,000 = £2,500
- 5% on the final £25,000 = £1,250
Stamp Duty rates*
| Minimum property purchase price | Maximum property purchase price | Stamp Duty rate (only applies only to the part of the property price falling within each band) |
|---|---|---|
| £0 | £125,000 | 0% |
| £125,001 | £250,000 | 2% |
| £250,001 | £925,000 | 5% |
| £925,001 | £1.5 million | 10% |
| Over £1.5 million | 12% |
Stamp Duty on second homes
Buyers of additional residential properties, such as second homes and buy-to-let properties, will have to pay an extra 3% in Stamp Duty on top of current rates for each band.This increased rate applies to properties bought for £40,000 or more.
It doesn’t apply to caravans, mobile homes or houseboats.
If you buy a new main residence but there’s a delay in selling your previous main residence, you’ll have to pay the higher Stamp Duty rates as you’ll now own two properties.
However, if you sell or give away your previous main home within 3 years of buying your new home you can apply for a refund of the higher SDLT rate part of your Stamp Duty bill.
You can request a refund for the amount above the normal Stamp Duty rates if:
- you sell your previous main residence within three years, and
- you claim the refund within three months of the sale of your previous main residence, or within 12 months of the filing date of your SDLT tax return, whichever comes later.
