Stamp duty, formally known as Stamp Duty Land Tax (SDLT) in the UK, is a tax paid by buyers when purchasing property or land over a specific price threshold in England and Northern Ireland. Stamp duty applies to both freehold and leasehold properties, whether you’re buying outright or with a mortgage. The amount of stamp duty payable depends on the purchase price of the property and whether it’s your first home, as different stamp duty rates and reliefs apply. Scotland and Wales have their own versions of the tax, known as Land and Buildings Transaction Tax and Land Transaction Tax, respectively.
The rate of stamp duty you will pay depends on where in the UK you buy your property. Scotland and Wales uses different rates to England and Northern Ireland.
You pay:
on the first £ (* properties costing < £40k are exempt), then
% on £ to £,
% on £ to £
,
% on £ to £
,
% on £ to £
and
% above £.
If there's a delay selling your main residence and it hasn't been sold on the day you complete your new purchase:
- you'll have to pay the higher Additional Property rates because you own 2 properties
- you may be able to get a refund if you sell your previous main home within 36 months
First Time Buyer Stamp Duty
First time buyers in England and Northern Ireland enjoy significant stamp duty reliefs. If you’re purchasing your first home, you can expect to pay no stamp duty on properties up to £425,000. For homes priced between £425,001 and £625,000, there’s a 5% tax on the portion above £425,000.
First Time Buyer Stamp Duty Eligibility:
-
Applies to your first purchase of a residential property
-
The property must be your main residence.
-
In a case of joint purchase, both buyers must be first time buyers
-
Does not apply if you’ve owned property before, including abroad.
Stamp Duty Support
At Lovell Homes, we have a wide range of offers designed to help you purchase your property, ranging from Energy Costs Contribution* to Armed Forces Discount*. We also offer help with paying your stamp duty*.
*subject to changes
Disclaimer
This is for information only and should not be relied upon unless confirmed by a purchaser with their conveyancer. For more detailed information on Stamp Duty, visit Gov UK stamp duty page.
Stamp Duty does not apply to Scotland, where you’ll pay Land and Buildings Transaction Tax instead when you buy a property. For more information, visit Scottish Government’s guide on LBTT.
