Stamp Duty

What is Stamp Duty?

Stamp Duty, also known as Stamp Duty Land Tax (SDLT), is a charge that applies when you buy a home in the UK.

How much you pay depends on the price of the home and your circumstances as a buyer. The higher the purchase price, the more Stamp Duty you'll pay. If you already own a home, such as a buy-to-let or a holiday home, a higher rate will apply.

If you're a first-time buyer, there's some good news. You'll benefit from a higher starting threshold, which means you won't pay Stamp Duty until the price of your home goes above a certain level.

Stamp Duty applies whether you're buying a new home or a previously owned one, and it covers both freehold and leasehold properties. It also applicable whether you're buying with a mortgage or using cash.

For more information on Stamp Duty, head to the government’s website.

How much Stamp Duty will I pay?

The amount of Stamp Duty you'll pay depends on the price of your new home. You can use our calculator above to get a quick and clear idea of what to expect.

Stamp Duty is worked out in bands, so you only pay tax on the part of the price that falls within each band – not the full amount.
It's also worth knowing that rates vary across the UK. If you're buying in England and Northern Ireland, the rates are the same. But if you're buying in Scotland or Wales, different rates apply.

Do you pay Stamp Duty on a new build?

Yes, Stamp Duty applies to new builds in the same way it does to existing properties. The difference is what's included in the total value.
When your Stamp Duty is calculated, it's based on the price of the new build, the value of the land and any optional upgrades you choose. This could include fixtures and fittings such as a new kitchen or built-in wardrobes.

It's worth keeping this in mind, as adding upgrades can increase the overall value of your purchase and move it into a higher Stamp Duty band. For example, a home priced at £245,000 could rise to £255,000 if you add £10,000 worth of fixtures and fittings.

Am I classed as a first-time buyer?

You're classed as a first-time buyer if:
• You're buying your only or main home
• You've never owned a residential property before, either in the UK or overseas
• You haven't previously inherited a property (or a share of one)

When do you need to pay Stamp Duty?

After you've completed the purchase of your new home, you have 14 days to submit your Stamp Duty return and pay any amount due. Your solicitor usually takes care of this.
If the return isn't submitted within this time, HMRC may charge penalties or interest, which is why it's important to make sure everything is completed on time.