The laws around stamp duty are always liable to change so here is an up to date rundown of how things are as we stand today.
At any time you can use our simple calculator to work out how much stamp duty you are eligible to pay on a property
You must pay Stamp Duty Land Tax (SDLT) if you buy a property or land over a certain price in England and Northern Ireland.
The tax is different if the property or land is in:
- Scotland – pay Land and Buildings Transaction Tax
- Wales – pay Land Transaction Tax if the sale was completed on or after 1 April 2018
The current SDLT threshold is £125,000 for residential properties and £150,000 for non-residential land and properties.
There are different rules if you’re buying your first home. You get a discount (relief) that means you pay less or no tax if:
- you complete your purchase on or after 22 November 2017
- the purchase price is £500,000 or less
- you, and anyone else you’re buying with, are first-time buyers
You pay the tax when you:
- buy a freehold property
- buy a new or existing leasehold
- buy a property through a shared ownership scheme
- are transferred land or property in exchange for payment, eg you take on a mortgage or buy a share in a house
How much you pay
How much you pay depends on whether the land or property is:
You may be able to reduce the amount of tax you pay by claiming relief, such as if you’re a first-time buyer or purchasing more than one property (‘multiple dwellings’).
The value you pay SDLT on (the ‘consideration’)
The total value you pay SDLT on (sometimes called the ‘consideration’) is usually the price you pay for the property or land.
Sometimes it might include another type of payment like:
- works or services
- release from a debt
- transfer of a debt, including the value of any outstanding mortgage
Next blog post: Residential property rates.