What is Stamp Duty?

Whether you’re a first time buyer or you’re already on the property ladder, you’ll need to know about Stamp Duty.

What is Stamp Duty?

Stamp Duty is a tax you might have to pay when you buy a new home. Not everyone will have to pay Stamp Duty. 

Until 30th June 2021, if you're buying a residential property in England and Northern Ireland, you will not have to pay Stamp Duty on the first £500,000 of a property's purchase price. This then reduces to £250,000 from 1st July until 30th September 2021.

If you're a first time buyer in England and Northern Ireland you will not have to pay Stamp Duty on the first £500,000 of a property's purchase price until 30th June 2021.

From 1st July, first time buyers will not pay any Stamp Duty on properties up to £300,000 and then 5% for any amount above £300,000 up to £500,000. 

If the purchase price is over £500,000 you will pay Stamp Duty at the homemover rate.

If you live in Wales, you’ll have to pay Land Transaction Tax (LTT) on homes that cost more than £250,000. This applies until the 30th June 2021, which then reduces to £180,000 from 1st July 2021.

In Scotland, this is called Land and Buildings Transaction Tax (LBTT), which is paid on homes that cost more than £145,000 (£175,000 if you are a first time buyer) from 1st April 2021.

You have 14 days to pay Stamp Duty after you get the keys to your new house. Your solicitor will handle the payment to HMRC. 

If your purchase isn't complete on or before these dates, you'll need to pay Stamp Duty at the usual rate, where it applies. Find out more about the changes to Stamp Duty.

Second homes

If you are buying a second home in England and Northern Ireland worth more than £40,000, you will have to pay an extra 3% Stamp Duty (additional rates apply in Scotland and Wales). 

This applies to: 

  • Second homes
  • Buy to Let properties
  • Holiday homes 

It doesn’t apply to: 

  • Caravans
  • Mobile homes
  • Houseboats 
You may have to pay a higher tax rate if you get the keys to your new home before selling your current one. You can apply for a refund on the government website once your home has been sold, if this is the case.  

Stamp Duty thresholds

The Stamp Duty rates you’ll pay until the 30th June 2021 are: 

Table showing Stamp Duty thresholds

Property value

Stamp Duty paid

Property value

Property value

Stamp Duty paid

Stamp Duty paid

Property value

£0 - £500,000

Stamp Duty paid

0%

Property value

£500,001 - £925,000

Stamp Duty paid

5%

Property value

£925,001 - £1.5m

Stamp Duty paid

10%

Property value

£1.5m+

Stamp Duty paid

12%

If you live in Wales, these are the Land Transaction Tax (LTT) rates you’ll pay until the 30th June 2021.

Table showing Land Transaction Tax (LTT) rates for Wales

Property value

Land Transaction Tax paid

Property value

Property value

Land Transaction Tax paid

Land Transaction Tax paid

Property value

£0 - £250,000

Land Transaction Tax paid

0%

Property value

£250,001 - £400,000

Land Transaction Tax paid

5%

Property value

£400,001 - £750,000

Land Transaction Tax paid

7.5%

Property value

£750,001 - £1.5m

Land Transaction Tax paid

10%

Property value

£1.5m+

Land Transaction Tax paid

12%

If you live in Scotland, these are the Land and Buildings Transaction Tax (LBTT) rates you’ll pay. 

Table showing Land and Buildings Transaction Tax (LBTT) rates for Scotland

Property value

Land and Buildings Transaction Tax paid

Property value

Property value

Land and Buildings Transaction Tax paid

Land and Buildings Transaction Tax paid

Property value

£0 - £145,000

Land and Buildings Transaction Tax paid

0%

Property value

£145,001 - £250,000

Land and Buildings Transaction Tax paid

2%

Property value

£250,001 - £325,000

Land and Buildings Transaction Tax paid

5%

Property value

£325,001 - £750,000

Land and Buildings Transaction Tax paid

10%

Property value

£750,001+

Land and Buildings Transaction Tax paid

12%

Do you pay Stamp Duty on Buy to Let properties?

In England and Northern Ireland, you'll pay a 3% Stamp Duty surcharge on any Buy to Let property worth over £40,000. You'll pay the following Stamp Duty rates until 30th June 2021. Check out the latest Government guidelines for the Stamp Duty rates.

If your purchase isn't complete on or before this date, you'll need to pay Stamp Duty at the usual rate, where it applies.

Table showing the Stamp Duty rates for Buy to Let properties

Property value

Stamp Duty paid

Property value

Property value

Stamp Duty paid

Stamp Duty paid

Property value

Up to £40,000

Stamp Duty paid

0%

Property value

£40,001 - £500,000

Stamp Duty paid

3%

Property value

£500,001 - £925,000

Stamp Duty paid

8%

Property value

£925,001 - £1.5m

Stamp Duty paid

13%

Property value

£1.5m+

Stamp Duty paid

15%

If you live in Wales or Scotland the rates of tax you pay on Buy to Let properties is different. You'll find more information about the rates and general Buy to Let help and advice here.

The content on this page is for reference and does not constitute financial advice. For impartial financial advice, we recommend government bodies like the Money Advice Service.

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