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BUYER GUIDES

Understanding Stamp Duty Land Tax

Wondering how much stamp duty you need to pay on a new home? Well, it depends on the value of the property. Here’s a simple guide.

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What is Stamp Duty? 

When you buy a home in the UK, the government will charge a tax. In England and Northern Ireland this charge is called Stamp Duty Land Tax (SDLT).

The amount you pay is dependent on the value of the property you purchase and when you choose to buy it.

Learn about taxation in Scotland or Wales

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Stamp Duty cuts

On 23rd September 2022, the Chancellor announced permanent reductions to the Stamp Duty rates. The price at which you do not have to pay Stamp Duty on a home has doubled from £125,000 up to £250,000. If you are a first time buyer, the price is now £425,000.

These changes will take effect immediately.

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I'm a first-time buyer, do I have to pay Stamp Duty?

Not if the home you’re buying is worth less than £425,000. You won’t pay any Stamp Duty on the first £425,000 of any home costing up to £625,000. You could save up to £6,250.

And you’ll only pay 5% on any proportion between £425,001 and £625,000.

However, if the price of the home is more than £625,000, you'll be required to pay normal Stamp Duty rates.

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How much will I have to pay?

The amount you pay depends on the value of the home you purchase. You’ll pay SDLT rates on the part of the property price within each tax band, as shown in this table.

Stamp Duty September 2022

How do I pay stamp duty?

Within 14 days of completion, you will need to send an SDLT return to HMRC and pay the tax within 14 days of completion.

Your solicitor will usually do this for you on the day of completion and add the amount to their fees.

Alternatively, you can file a return and pay the tax yourself.

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