Stamp Duty (SDLT) is a lump sum tax, payable when you purchase a property or land costing over a set amount. The rate of stamp duty differs across the UK, with England, Wales and Northern Ireland charging the same rate. Stamp duty in Scotland is known as ‘Land and Buildings Transaction Tax’ and is charged at a different rate to the rest of the UK.
The higher the price of the property you are purchasing, the higher the stamp duty charge.
Stamp Duty uses a tiered structure, this means the same level of tax is not applied to the total property price. Instead, You’ll pay tax on each portion of the property price that falls into the different stamp duty bands.
Please see the chart below, which shows the current rates:
What stamp duty will I pay?
| Purchase Price | SDLT on Regular Purchase | SDLT for Additional Properties |
| Upto £250,000 | 0% | 3% |
| £250,001 to £925,00 | 5% | 8% |
| £925,001 to £1,500,000 | 10% | 13% |
| £1,500,000+ | 12% | 15% |
If you are a first time buyer you will pay reduced rates of SDLT as detailed below. (This only applies where the purchase price is less than £625,000)
| Purchase Price | First Time Buyer SDLT |
| Upto £425,000 | 0% |
| £425,001 to £625,000 | 5% |
| Above £625,000 | All SDLT will be calculated using the standard bands. |
Your solicitor will advise of the stamp duty costs and arrange the payment of this tax for you during the legal process.
Major stamp duty changes have taken place recently and we saw the introduction of the “additional properties stamp duty charge”. Essentially, anyone purchasing a property whom will own an extra property after completion of the new purchase will pay the higher rate. An example of this is perhaps the purchase of an investment property or if you purchase a new residential property but decide to keep your existing home as a rental property.
Please see the diagram below which helps explain this:
Please see our stamp duty calculator, which will help you work out your stamp duty land tax charge.