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What is Stamp Duty?

Stamp Duty Land Tax (SDLT) is a type of tax you may have to pay if you buy a home, or a piece of land, in England or Northern Ireland.

How much tax 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

Buying in Scotland or Wales?

The Scottish and Welsh equivalents of SDLT are:

When do you have to pay Stamp Duty?

Stamp Duty is typically charged on any transaction that involves an exchange of property. For example, when you buy:

  • a freehold property

  • a new, or existing leasehold property

  • a share of a property through a shared ownership scheme

  • any commercial property

  • a buy-to-let property

If the property is under a certain price (threshold), there is no SDLT to pay. You may also be entitled to a discount (tax relief), if you’re a first-time buyer, for example.

If you’re buying a property in England or Northern Ireland, you have 14 days from completion, to pay your Stamp Duty bill through Her Majesty’s Revenue and Customs (HMRC). In Scotland and Wales, you’ll have 30 days to make the equivalent payment. 

If you have a solicitor or licensed conveyancer, they’ll usually collect the money from you in advance and file a return on your behalf. However, you’re still responsible for making sure it’s paid on time and will be charged a penalty if it isn’t.  

How much is Stamp Duty?

In 2020, the starting threshold for STLT rates for residential property purchases in England and Norther Ireland was temporarily reduced to £500,000. This has now reduced, as planned, to £250,000 until 30 September 2021.1 

SDLT rates from 1 July – 30 September 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 than you otherwise would have.

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 onward.

Buying your first property

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 than you otherwise would have.

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 onward.

Property price
Stamp Duty payable
Potential saving
£250,000
£0
No change
£500,000
£10,000
No change
£1m
£41,250
£2,500
Property price
£250,000
£250,000
Stamp Duty payable
£0
£0
Potential saving
No change
No change
Property price
£500,000
£500,000
Stamp Duty payable
£10,000
£10,000
Potential saving
No change No change
Property price
£1m
£1m
Stamp Duty payable
£41,250
£41,250
Potential saving
£2,500
£2,500

Buying a new property that will be your only home

Property price
Stamp Duty payable
Potential saving
£250,000
£0
No change
£500,000
£12,500
£2,500
£1m
£41,250
£2,500
Property price
£250,000
£250,000
Stamp Duty payable
£0
£0
Potential saving
No change No change
Property price
£500,000
£500,000
Stamp Duty payable
£12,500
£12,500
Potential saving
£2,500
£2,500
Property price
£1m
£1m
Stamp Duty payable
£41,250
£41,250
Potential saving
£2,500
£2,500

Buying a second or additional home

Property price
Stamp Duty payable
Potential saving
£250,000
£7,500
£2,500
£500,000
£27,500
£2,500
£1m
£71,250
£2,500
Property price
£250,000
£250,000
Stamp Duty payable
£7,500
£7,500
Potential saving
£2,500
£2,500
Property price
£500,000
£500,000
Stamp Duty payable
£27,500
£27,500
Potential saving
£2,500
£2,500
Property price
£1m
£1m
Stamp Duty payable
£71,250
£71,250
Potential saving
£2,500
£2,500

SDLT rates from 1 October 2021

The total amount of Stamp Duty you’ll pay for properties in England and Northern Ireland is cumulative. 

You'll have to pay the rate of Stamp Duty for each segment of the property’s value according to these percentages.

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. This means 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.

Property price
Percentage taxed
£0 to £300,000
0%
£300,001 to £500,000
5%
Property price
£0 to £300,000
£0 to £300,000
Percentage taxed
0%
0%
Property price
£300,001 to £500,000
£300,001 to £500,000
Percentage taxed
5%
5%

If the price is over £500,000, you follow the rules for people who’ve bought a home before.

Buying a new property that will be your only home

Property price
Percentage taxed
£0 to £125,000 0%
£125,001 to £250,000
2%
£250,001 to £925,000
5%
£925,001 to £1,500,000
10%
Over £1,500,001
12%
Property price
£0 to £125,000 £0 to £125,000
Percentage taxed
0%
0%
Property price
£125,001 to £250,000
£125,001 to £250,000
Percentage taxed
2%
2%
Property price
£250,001 to £925,000
£250,001 to £925,000
Percentage taxed
5%
5%
Property price
£925,001 to £1,500,000
£925,001 to £1,500,000
Percentage taxed
10%
10%
Property price
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

  • total Stamp Duty payable = £43,750

Buying a second or additional home

If you’re buying a second home in England or Northern Ireland, the rates for additional properties are higher.

Property price
Percentage taxed
£0 to £125,000 3%
£125,001 to £250,000
5%
£250,001 to £925,000
8%
£925,001 to £1,500,000
13%
Over £1,500,001
15%
Property price
£0 to £125,000 £0 to £125,000
Percentage taxed
3%
3%
Property price
£125,001 to £250,000
£125,001 to £250,000
Percentage taxed
5%
5%
Property price
£250,001 to £925,000
£250,001 to £925,000
Percentage taxed
8%
8%
Property price
£925,001 to £1,500,000
£925,001 to £1,500,000
Percentage taxed
13%
13%
Property price
Over £1,500,001
Over £1,500,001
Percentage taxed
15%
15%

How much is SDLT for non-UK residents?

From 1 April 2021, if you buy a residential property in England or Northern Ireland, and you’re not a UK resident – you’ll need to pay a surcharge of 2%.2 

This means, SDLT rates are 2% higher on properties purchased by non-UK residents, compared to UK residents. The surcharge doesn’t apply to purchases of land or buildings in Scotland or Wales. 

This additional 2% surcharge applies to purchases of both freehold and leasehold properties, and is on top of all residential rates of SDLT, including zero rates. For example, there are no exemptions for first-time buyers or if the property is priced under the SDLT threshold.   

It also increases the SDLT payable on rents on the grant of a new lease. 

Land and Buildings Transaction Tax (LBTT) – Scotland

In 2020, the starting threshold for LBTT rates for residential property purchases in Scotland was temporarily reduced to £250,000. This has now returned, as planned, to £145,000 for transactions.3

LBTT rates from 1 April 2021

The total amount of LBTT you’ll pay for properties in Scotland is cumulative.

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.

Buying a new property that will be your only home

Property price
Percentage taxed
£0 to £145,000
0%
£145,001 to £250,000
2%
£250,001 to £325,000
5%
£325,001 to £750,000
10%
Over £750,001
12%
Property price
£0 to £145,000
£0 to £145,000
Percentage taxed
0%
0%
Property price
£145,001 to £250,000
£145,001 to £250,000
Percentage taxed
2%
2%
Property price
£250,001 to £325,000
£250,001 to £325,000
Percentage taxed
5%
5%
Property price
£325,001 to £750,000
£325,001 to £750,000
Percentage taxed
10%
10%
Property price
Over £750,001
Over £750,001
Percentage taxed
12%
12%

Buying a second or additional home

For second properties in Scotland you pay an extra 4% on the total value of the property.

Land Transaction Tax (LTT) – Wales

LTT rates from 1 July 2021

Buying your first property

There are no concessions for first-time buyers in Wales.

Buying a new property that will be your only home

The total amount of LTT you’ll pay for properties in Wales is cumulative.4

Property price
Percentage taxed
£0 to £180,000
0%
£180,001 to £250,000
3.5%
£250,001 to £400,000
5%
£400,001 to £750,000
7.5%
£750,001 to £1,500,000
10%
Over £1,500,001
12%
Property price
£0 to £180,000
£0 to £180,000
Percentage taxed
0%
0%
Property price
£180,001 to £250,000
£180,001 to £250,000
Percentage taxed
3.5%
3.5%
Property price
£250,001 to £400,000
£250,001 to £400,000
Percentage taxed
5%
5%
Property price
£400,001 to £750,000
£400,001 to £750,000
Percentage taxed
7.5%
7.5%
Property price
£750,001 to £1,500,000
£750,001 to £1,500,000
Percentage taxed
10%
10%
Property price
Over £1,500,001
Over £1,500,001
Percentage taxed
12%
12%

Buying a second or additional home

The rates for additional properties are slightly higher.

Property price
Percentage taxed
£0 to £180,000
3%
£180,001 to £250,000
6.5%
£250,001 to £400,000
8%
£400,001 to £750,000
10.5%
£750,001 to £1,500,000
13%
Over £1,500,001
15%
Property price
£0 to £180,000
£0 to £180,000
Percentage taxed
3%
3%
Property price
£180,001 to £250,000
£180,001 to £250,000
Percentage taxed
6.5%
6.5%
Property price
£250,001 to £400,000
£250,001 to £400,000
Percentage taxed
8%
8%
Property price
£400,001 to £750,000
£400,001 to £750,000
Percentage taxed
10.5%
10.5%
Property price
£750,001 to £1,500,000
£750,001 to £1,500,000
Percentage taxed
13%
13%
Property price
Over £1,500,001
Over £1,500,001
Percentage taxed
15%
15%