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At a glance:
Stamp Duty Land Tax is a tax that you may need to pay when you buy a property in England and Northern Ireland.
There are similar taxes that may apply when you buy property in other parts of the UK. In Scotland this is called Land and Buildings Transaction Tax and in Wales it is called Land Transaction Tax. First time buyers sometimes pay less tax, depending on the country and the price of the property.
Where properties are non-residential or used for a mixture of residential and non-residential purposes different rules and rates may apply. This guide covers properties used for wholly residential purposes only.
What are the stamp duty rules in England and Northern Ireland?
Stamp Duty Land Tax (SDLT) is a tax that you may need to pay when you buy a property in England or Northern Ireland.
What are Stamp Duty Land Tax rates?
If you’re buying a residential property, the amount of SDLT you owe will depend on the price you pay for the property. It also depends on whether it is your only home or an additional property, for example a buy-to-let or a second home, and also on whether you are resident in the UK.
What are the first time buyers rules for Stamp Duty Land Tax?
First time buyers may pay less stamp duty, or no stamp duty at all.
If you buy a property for £500,000 or less, you pay no SDLT on the first £300,000, and 5% on the portion between £300,001 and £500,000.
Where can I find out more about Stamp Duty Land Tax?
You can find the latest information on Stamp Duty Land Tax, as well as help to work out how much you could owe when you buy your property, on Gov.uk’s Stamp Duty Land Tax page.
When do you pay Stamp Duty Land Tax?
If you're buying in England or Northern Ireland, you have just 14 days to pay SDLT from the date you complete on the purchase of your property (or the date you’re due to get the keys on the contract). If you miss this date, you may have to pay a fine and possibly interest.
How do you pay Stamp Duty Land Tax?
Usually, your solicitor or conveyancer will ask you to pay the SDLT you owe to them. They will then send off the SDLT return and pay the bill for you. You’re still legally responsible for making sure this is done accurately and on time though.
You can also file a Stamp Duty Land Tax return yourself.
When is Stamp Duty Land Tax not payable?
You don’t have to pay SDLT if:
The property you’re buying is under £125,000 and you’re going to move into it
You’re buying a second home, a holiday home or a buy-to-let for £40,000 or less
You’re a first-time buyer and the property you’re buying is under £300,000
Can Stamp Duty Land Tax be paid in instalments?
No, SDLT must be paid in one lump sum within 14 days of you completing on the purchase of your property.
Can I pay Stamp Duty Land Tax by credit card?
No, you can’t pay for SDLT with a personal credit card. You can pay it by cheque, by debit card or by online banking.
Can Stamp Duty Land Tax be added to my mortgage?
If you don’t have enough savings to cover SDLT as well as your deposit and buying costs, it’s possible to add the cost of the SDLT to your mortgage. If you decide to do this, please be aware that:
It will increase your long-term debt.
You’ll be paying interest on your SDLT for the full term of your mortgage, which may amount to more than the SDLT itself.
It could push your loan-to-value ratio (LTV) too high. The LTV is a measure of how much of the property's value you’re borrowing, and the most competitive mortgage deals usually need a maximum LTV of 60%.
Can I claim Stamp Duty Land Tax back?
If you paid a higher rate of SDLT because you bought an additional home and hadn’t sold your previous home at the same time, you may be able to claim the additional amount back. You can do this if you sell your original home within three years of buying your new one, and you do not own more properties after the sale than you did when you bought the additional home.
For properties sold on or after 29 October 2018 the refund must be claimed within 12 months of the latest of the following:
the sale or gift of the previous main residence or
the date the SDLT return was filed for the new residence.
For properties sold on or before 28 October 2018 the refund must be claimed within three months of selling or gifting your previous home. Or it can be claimed within 12 months of filing your SDLT return. Use whichever date is later.
There may be exceptional circumstances that allow you to ask for money back if you sell your original home after the 3-year limit.
What are the stamp duty rules in Scotland?
Land and Buildings Transaction Tax (LBTT) is a tax that you may need to pay when you buy a property in Scotland.
What are Land and Buildings Transaction Tax rates?
If you’re buying a residential property, the amount of LBTT you owe will depend on the price you pay for the property. It also depends on whether it is your only home or an additional property, for example, a buy-to-let, or a second home.
What are the first time buyers rules for Land and Buildings Transaction Tax?
First time buyers don’t pay any Land and Buildings Transaction Tax on properties up to £175,000.
Where can I find out more about Land and Buildings Transaction Tax?
You can find the latest information on Land and Buildings Transaction Tax, as well as help to work out how much you could owe when you buy your property, on Gov.scot’s Land and Buildings Transaction Tax (LBTT) page.
What are the stamp duty rules in Wales?
Land Transaction Tax (LTT) is a tax that you may need to pay when you buy a property in Wales.
What are Land Transaction Tax rates?
If you’re buying a residential property, the amount of LTT you owe will depend on the price you pay for the property. It also depends on whether it is your only home or an additional property, for example, a buy-to-let or a second home.
What are the first time buyers rules for Land Transaction Tax?
There are no special rates for first time buyers in Wales.
Where can I find out more about Land Transaction Tax?
You can find the latest information on Land Transaction Tax, as well as help to work out how much you could owe when you buy your property, on Gov.wales’ Land Transaction Tax rates and bands page.
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The content on this page is for reference and was correct at the date of publication. It is not financial advice and should be checked for accuracy at the latest guidance at the links to Government guidance given above.
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