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.
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.
The temporary reduction in Stamp Duty is due to end of 31 March 2025. The price at which you do not have to pay Stamp Duty on a home will lower from £250,000 to £125,000. If you are a first time buyer, the price will lower £425,000 to £300,000.
Not if the home you’re buying is worth less than £425,000. But from 31 March 2025, this price will lower to £300,000.
Currently, 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.
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.
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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You can learn more about the most recent Government guidance on Stamp Duty Land Tax here.
