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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:

  • Whether the property is leasehold or freehold
  • If you’re a first time buyer
  • If you’re buying an additional property
  • The amount you pay for the property

You can use HMRC’s Stamp Duty Land Tax (SDLT) calculator to work out how much stamp duty you will pay.

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 – for example if you’re a landlord with multiple properties). Just be aware that you’ll also pay an additional 2% surcharge if you’re not normally ‘resident’ in the UK.
 

Property Value Single Property
SDLT
Additional Property
SDLT
Up to £250,000 0% 3%
£250,001 to £925,000 5% 8%
£925,001 to £1.5 million 10% 13%
£1.5 million upwards 12% 15%

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.

For example

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.
 

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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!

You can also send a SDLT return yourself online or by post, as well as paying the stamp duty directly to HMRC.

Do I have to submit a stamp duty return if there’s nothing to pay?

Yes, even if you think that you won’t have to actually pay any stamp duty, you must still submit a return.

 
Learn more about our online accounting services for property businesses, call 020 3355 4047, and get an instant online quote.

About The Author

Lauren Harvey

A fully AAT and ACCA qualified accountant, I support a wide range of businesses, from sole traders and partnerships to larger limited companies. Learn more about Lauren.

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