Stamp Duty, also known as Stamp Duty Land Tax (SDLT), is a charge that applies when purchasing a residential property in the UK.
The charge applies regardless of whether the property is new or second hand, and the amount you pay depends on the purchase price. Stamp Duty also applies to both freehold and leasehold properties and whether you are using a mortgage or buying with cash.
|Purchase Price||Rate on main residence||Rate for additional properties (2)|
|Up to £125,000 (£300,000 for first-time buyers (1)||0%||3%|
|£125,0001 – £250,000||2%||5%|
|£250,001 – £925,000||5%||8%|
|£925,001 – £1,500,000||10%||13%|
(1) If you are a first-time buyer purchasing a property costing more than £500,000, the £300,000 first-time buyer stamp duty threshold does not apply and you will pay the normal rate of stamp duty.
(2) If you are purchasing a buy-to-let property or a second home (that is not a replacement for your main residence) that costs more than £40,000, you will need to pay the additional 3% Stamp Duty surcharge.
In Wales, Stamp Duty is referred to as the Land Transaction Tax (LTT) and applies to home purchases of more than £180,000. You can see a full breakdown of how Land Transaction Tax is charged in Wales on the Government website here.
In Scotland, Stamp Duty is referred to as the Land and Buildings Transaction Tax (LBTT) and is charged when you buy a home of more than £145,000, or £175,000 if you are a first-time buyer. You can see a full breakdown of how Land and Buildings Transaction Tax is charged on the Government website here.