In England and Northern Ireland this is called Stamp Duty Land Tax, or just Stamp Duty. In Wales it’s called Land Transaction Tax and in Scotland it’s called Land and Buildings Transaction Tax.
The amount of Stamp Duty you pay will vary depending on a number of factors, including whether or not you’re a first-time buyer.
Stamp Duty is typically levied on any transaction that involves an exchange of property. This includes transactions such as:
buying a freehold property
buying a new, or existing leasehold property
buying a share of a property through a shared ownership scheme
buying any commercial property
buying a buy-to-let property
You may be entitled to certain concessions, for instance if you’re a first-time buyer.
You have 14 days after you complete the purchase of your property to file a return to Her Majesty’s Revenue and Customs (HMRC). However, you probably won’t need to take any action yourself, as your conveyancer should collect Stamp Duty money from you in advance and will usually file a return on completion day.
In 2020 the government announced a Stamp Duty holiday in England and Northern Ireland from 8 July 2020 until 31 March 2021. On 3 March 2021 this was extended to 30 June 2021.
If you’re looking to buy your first property or move home, Stamp Duty will not be charged on the first £500,000 of the purchase price – as long as the home you’re buying will be the only home you own.
This is a temporary measure and, if you’ll own more than 1 property, the 3% extra Stamp Duty will still apply.
This means that, during this time, if you buy your first, or only, property in England or Northern Ireland for £500,000 or less, you won’t have to pay Stamp Duty. If you buy a property for more than £500,000 or an additional property, you will pay significantly less in Stamp Duty.
The tables below show you how much you could save during the Stamp Duty holiday.
| Property value |
Stamp Duty payable |
Potential saving |
|---|---|---|
| £250,000 |
£0 |
No change |
| £500,000 |
£0 |
£10,000 |
| £1m |
£28,750 |
£15,000 |
| Property value |
£250,000 |
£250,000 |
|---|---|---|
| Stamp Duty payable |
£0 |
£0 |
| Potential saving |
No change |
No change |
| Property value |
£500,000 |
£500,000 |
| Stamp Duty payable |
£0 |
£0 |
| Potential saving |
£10,000 |
£10,000 |
| Property value |
£1m |
£1m |
| Stamp Duty payable |
£28,750 |
£28,750 |
| Potential saving |
£15,000 |
£15,000 |
Buying a new home that will be your only home
| Property value |
Stamp Duty payable |
Potential saving |
|---|---|---|
| £250,000 |
£0 |
£2,500 |
| £500,000 |
£0 |
£15,000 |
| £1m |
£28,750 |
£15,000 |
| Property value |
£250,000 |
£250,000 |
|---|---|---|
| Stamp Duty payable |
£0 |
£0 |
| Potential saving |
£2,500 |
£2,500 |
| Property value |
£500,000 |
£500,000 |
| Stamp Duty payable |
£0 |
£0 |
| Potential saving |
£15,000 |
£15,000 |
| Property value |
£1m |
£1m |
| Stamp Duty payable |
£28,750 |
£28,750 |
| Potential saving |
£15,000 |
£15,000 |
Purchasing an additional home
| Property value |
Stamp Duty payable |
Potential saving |
|---|---|---|
| £250,000 |
£7,500 |
£2,500 |
| £500,000 |
£15,000 |
£15,000 |
| £1m |
£58,750 |
£15,000 |
| Property value |
£250,000 |
£250,000 |
|---|---|---|
| Stamp Duty payable |
£7,500 |
£7,500 |
| Potential saving |
£2,500 |
£2,500 |
| Property value |
£500,000 |
£500,000 |
| Stamp Duty payable |
£15,000 |
£15,000 |
| Potential saving |
£15,000 |
£15,000 |
| Property value |
£1m |
£1m |
| Stamp Duty payable |
£58,750 |
£58,750 |
| Potential saving |
£15,000 |
£15,000 |
When the Stamp Duty holiday ends on 30 June 2021, the starting threshold will be set to £250,000.
This will then reduce to £125,000 from 1 October 2021.
If you buy your first property or move home during this period, you won’t pay Stamp Duty on the first £250,000 of a property purchased – as long as the home you’re buying will be the only home you own.
This is a temporary measure and, if you’ll own more than 1 property, the 3% extra Stamp Duty will still apply.
This means that, during this time, if you buy your first, or only, property in England or Northern Ireland for £250,000 or less, you won’t have to pay Stamp Duty. If you buy a property for more than £250,000 or an additional property, you will pay significantly less in Stamp Duty.
The tables below show you how much you could save if your purchase completes between 1 July and 30 September 2021, compared to completing from 1 October 2021.
| Property value |
Stamp Duty payable |
Potential saving |
|---|---|---|
| £250,000 |
£0 |
No change |
| £500,000 |
£10,000 |
No change |
| £1m |
£41,250 |
£2,500 |
| Property value |
£250,000 |
£250,000 |
|---|---|---|
| Stamp Duty payable |
£0 |
£0 |
| Potential saving |
No change |
No change |
| Property value |
£500,000 |
£500,000 |
| Stamp Duty payable |
£10,000 |
£10,000 |
| Potential saving |
No change |
No change |
| Property value |
£1m |
£1m |
| Stamp Duty payable |
£41,250 |
£41,250 |
| Potential saving |
£2,500 |
£2,500 |
Buying a new home that will be your only home
| Property value |
Stamp Duty payable |
Potential saving |
|---|---|---|
| £250,000 |
£0 |
No change |
| £500,000 |
£12,500 |
£2,500 |
| £1m |
£41,250 |
£2,500 |
| Property value |
£250,000 |
£250,000 |
|---|---|---|
| Stamp Duty payable |
£0 |
£0 |
| Potential saving |
No change |
No change |
| Property value |
£500,000 |
£500,000 |
| Stamp Duty payable |
£12,500 |
£12,500 |
| Potential saving |
£2,500 |
£2,500 |
| Property value |
£1m |
£1m |
| Stamp Duty payable |
£41,250 |
£41,250 |
| Potential saving |
£2,500 |
£2,500 |
Purchasing an additional home
| Property value |
Stamp Duty payable |
Potential saving |
|---|---|---|
| £250,000 |
£7,500 |
£2,500 |
| £500,000 |
£27,500 |
£2,500 |
| £1m |
£71,250 |
£2,500 |
| Property value |
£250,000 |
£250,000 |
|---|---|---|
| Stamp Duty payable |
£7,500 |
£7,500 |
| Potential saving |
£2,500 |
£2,500 |
| Property value |
£500,000 |
£500,000 |
| Stamp Duty payable |
£27,500 |
£27,500 |
| Potential saving |
£2,500 |
£2,500 |
| Property value |
£1m |
£1m |
| Stamp Duty payable |
£71,250 |
£71,250 |
| Potential saving |
£2,500 |
£2,500 |
The starting threshold for Land and Buildings Transaction Tax (LBTT) for residential property transactions will temporarily be raised from £145,000 to £250,000.
| Purchase price |
LBTT |
|---|---|
| Up to £250,000 |
0% |
| £250,001 to £325,000 |
5% |
| £325,001 to £750,000 |
10% |
| Over £750,000 |
12% |
| Purchase price |
Up to £250,000 |
Up to £250,000 |
|---|---|---|
| LBTT |
0% | 0% |
| Purchase price |
£250,001 to £325,000 |
£250,001 to £325,000 |
| LBTT |
5% | 5% |
| Purchase price |
£325,001 to £750,000 |
£325,001 to £750,000 |
| LBTT |
10% | 10% |
| Purchase price |
Over £750,000 |
Over £750,000 |
| LBTT |
12% |
12% |
This means that, during this time, if you buy your first, or only, property in Scotland for £250,000 or less, you won’t have to pay LBTT.
If you buy a property for more than £250,000, or an additional property, you will pay significantly less in LBTT. If after the purchase you own more than 1 property, the Additional Dwelling Supplement (ADS) remains at 4% of the purchase price.
Changes to the Land Transaction Tax (LTT) rates and thresholds will apply to residential property purchases from 27 July 2020 to 30 June 2021. The starting threshold for LTT main residential rates will be set at £250,000.
This means those buying their only property costing less than £250,000 will pay no LTT and those buying their only property for more than £250,000 will make a saving of £2,450. These changes will not apply to those buying property as an investment, or those owning more than 1 property after the transaction.
The rate of Stamp Duty you’ll pay depends on:
which part of the UK you’re buying in
whether you’re a first-time buyer
whether you’re buying a second or further additional property
the value of the property
The figures and percentages below are the Stamp Duty charges for buying a home outside of the Stamp Duty holiday period.
The total amount of Stamp Duty you’ll pay is cumulative. You'll have to pay the rate of Stamp Duty for each segment of the property’s value according to these percentages.
| Amount |
Percentage taxed |
|---|---|
| £0 - £125,000 | 0% |
| £125,001 - £250,000 |
2% |
| £250,001 - £925,000 |
5% |
| £925,001 - £1,500,000 |
10% |
| Over £1,500,001 |
12% |
| Amount |
£0 - £125,000 | £0 - £125,000 |
|---|---|---|
| Percentage taxed |
0% |
0% |
| Amount |
£125,001 - £250,000 |
£125,001 - £250,000 |
| Percentage taxed |
2% |
2% |
| Amount |
£250,001 - £925,000 |
£250,001 - £925,000 |
| Percentage taxed |
5% |
5% |
| Amount |
£925,001 - £1,500,000 |
£925,001 - £1,500,000 |
| Percentage taxed |
10% |
10% |
| Amount |
Over £1,500,001 |
Over £1,500,001 |
| Percentage taxed |
12% |
12% |
So, if you were buying a property worth £1,000,000, you would pay:
0% of the value below £125,000 = £0
2% of the value between £125,001 and £250,000 = £2,500
5% of the value between £250,001 and £925,000 = £33,750
10% of the value between £925,001 and £1,000,000 = £7,500
Making the total Stamp Duty payable = £43,750
Buying a second home
If you’re buying a second home in England or Northern Ireland. The rates for additional properties are higher.
| Amount |
Percentage taxed |
|---|---|
| £0 - £125,000 | 3% |
| £125,001 - £250,000 |
5% |
| £250,001 - £925,000 |
8% |
| £925,001 - £1,500,000 |
13% |
| Over £1,500,001 |
15% |
| Amount |
£0 - £125,000 | £0 - £125,000 |
|---|---|---|
| Percentage taxed |
3% |
3% |
| Amount |
£125,001 - £250,000 |
£125,001 - £250,000 |
| Percentage taxed |
5% |
5% |
| Amount |
£250,001 - £925,000 |
£250,001 - £925,000 |
| Percentage taxed |
8% |
8% |
| Amount |
£925,001 - £1,500,000 |
£925,001 - £1,500,000 |
| Percentage taxed |
13% |
13% |
| Amount |
Over £1,500,001 |
Over £1,500,001 |
| Percentage taxed |
15% |
15% |
Buying your first property
First-time buyers (buyers who have never previously owned a property, or part of a property, anywhere else in the world) get a special discount on their Stamp Duty, meaning there’s no tax on the first £300,000 of the property price provided it is below £500,000. If the property value is above £500,000 then there is no discount and you pay the same as other purchasers.
| Amount |
Percentage taxed |
|---|---|
| £0 - £300,000 |
0% |
| £300,001 - £500,000 |
5% |
| Over £500,001 |
0% |
| Amount |
£0 - £300,000 |
£0 - £300,000 |
|---|---|---|
| Percentage taxed |
0% |
0% |
| Amount |
£300,001 - £500,000 |
£300,001 - £500,000 |
| Percentage taxed |
5% |
5% |
| Amount |
Over £500,001 |
Over £500,001 |
| Percentage taxed |
0% |
0% |
| Amount |
Percentage taxed |
|---|---|
| £0 - £145,000 |
0% |
| £145,001 - £250,000 |
2% |
| £250,001 - £325,000 |
5% |
| £325,001 - £750,000 |
10% |
| Over £750,001 |
12% |
| Amount |
£0 - £145,000 |
£0 - £145,000 |
|---|---|---|
| Percentage taxed |
0% |
0% |
| Amount |
£145,001 - £250,000 |
£145,001 - £250,000 |
| Percentage taxed |
2% |
2% |
| Amount |
£250,001 - £325,000 |
£250,001 - £325,000 |
| Percentage taxed |
5% |
5% |
| Amount |
£325,001 - £750,000 |
£325,001 - £750,000 |
| Percentage taxed |
10% |
10% |
| Amount |
Over £750,001 |
Over £750,001 |
| Percentage taxed |
12% |
12% |
Buying a second property
For second properties in Scotland you pay an extra 4% on the total value of the property.
Buying your first property
First-time buyers in Scotland do not pay any tax on the first £175,000 of the value of their property.
When you buy a property in Wales, you’ll pay Land Transaction Tax (LTT). The total amount of LTT you’ll pay is cumulative.
| Amount |
Percentage taxed |
|---|---|
| £0 - £180,000 |
0% |
| £180,001 - £250,000 |
3.5% |
| £250,001 - £400,000 |
5% |
| £400,001 - £750,000 |
7.5% |
| £750,001 - £1,500,000 |
10% |
| Over £1,500,001 |
12% |
| Amount |
£0 - £180,000 |
£0 - £180,000 |
|---|---|---|
| Percentage taxed |
0% |
0% |
| Amount |
£180,001 - £250,000 |
£180,001 - £250,000 |
| Percentage taxed |
3.5% |
3.5% |
| Amount |
£250,001 - £400,000 |
£250,001 - £400,000 |
| Percentage taxed |
5% |
5% |
| Amount |
£400,001 - £750,000 |
£400,001 - £750,000 |
| Percentage taxed |
7.5% |
7.5% |
| Amount |
£750,001 - £1,500,000 |
£750,001 - £1,500,000 |
| Percentage taxed |
10% |
10% |
| Amount |
Over £1,500,001 |
Over £1,500,001 |
| Percentage taxed |
12% |
12% |
Buying a second property
The rates for additional properties are slightly higher.
| Amount |
Percentage taxed |
|---|---|
| £0 - £180,000 |
3% |
| £180,001 - £250,000 |
6.5% |
| £250,001 - £400,000 |
8% |
| £400,001 - £750,000 |
10.5% |
| £750,001 - £1,500,000 |
13% |
| Over £1,500,001 |
15% |
| Amount |
£0 - £180,000 |
£0 - £180,000 |
|---|---|---|
| Percentage taxed |
3% |
3% |
| Amount |
£180,001 - £250,000 |
£180,001 - £250,000 |
| Percentage taxed |
6.5% |
6.5% |
| Amount |
£250,001 - £400,000 |
£250,001 - £400,000 |
| Percentage taxed |
8% |
8% |
| Amount |
£400,001 - £750,000 |
£400,001 - £750,000 |
| Percentage taxed |
10.5% |
10.5% |
| Amount |
£750,001 - £1,500,000 |
£750,001 - £1,500,000 |
| Percentage taxed |
13% |
13% |
| Amount |
Over £1,500,001 |
Over £1,500,001 |
| Percentage taxed |
15% |
15% |
Buying your first property
There are no concessions for first-time buyers in Wales.
You may be entitled to a discount depending on your circumstances and the type of property you’re buying. Exceptions include:
zero-carbon homes and flats under £500,000 are exempt from Stamp Duty, while those over £500,000 have their Stamp Duty bill reduced by £15,000
right-to-buy transactions may qualify for a discount
charities can apply for Stamp Duty relief when buying property for charitable purposes
registered social landlords may be able to apply for relief
