Stamp Duty Land Tax (SDLT) is a type of tax the buyer must pay if they purchase property or land above a certain value in England or Northern Ireland. In Wales this is known as Land Transaction Tax (LTT), and in Scotland you’ll pay Land and Buildings Transaction Tax (LBTT).
How much stamp duty Stamp Duty Land Tax (SDLT) will I pay?
Your bill for Stamp Duty Land Tax (SDLT) is calculated as a percentage of the amount you paid when you purchased the land or property, and whether or not you’re eligible for exemption or due tax relief. The amount you’ll pay depends on:
Stamp Duty Land Tax is only due on properties over £250,000
The stamp duty rates and thresholds shown in the table below apply for single residential properties purchased from 23rd September 2022 onwards. A single property means it’s the only residential property you own once the sale is complete (if you do own another, you’ll normally pay an additional 3% on these rates). Just be aware that you’ll also pay an additional 2% surcharge if you’re not normally ‘resident’ in the UK.
Single Property SDLT
Additional Property SDLT
Up to £250,000
£250,001 to £925,000
£925,001 to £1.5 million
£1.5 million upwards
Will I pay stamp duty on the whole amount?
The short answer is no! Stamp duty is a bit like income tax, in that it’s charged in bands, rather than paying a single rate on everything. It means that you might pay more than one rate of stamp duty, which will only be applied to the part of the sale within a particular range.
If you buy a house for £300,000 you’ll pay:
Nothing on the first £250,000
5% on the remaining £50,000
So you’ll pay £2,500 in stamp duty.
Are there any exemptions for stamp duty?
Some transactions are exempt from paying stamp duty tax, such as properties that are transferred as part of a divorce settlement or the dissolving of a civil partnership. Property that is left to someone in a will is also exempt, along with transactions that don’t have a chargeable consideration.
How and when should I pay stamp duty?
You must send a Stamp Duty Land Tax (SDLT) return to HMRC and pay anything that you owe within 14 days of completing the purchase. Your solicitor or agent might submit an SDLT return on your behalf, and you will then pay the amount directly to them. Always double-check this with them – never assume!