Stamp Duty
What is Stamp Duty?
Stamp Duty Land Tax (SDLT) is owed to the Government if you purchase a property above a certain value in England, Wales and Northern Ireland.
Currently residential properties costing more than £250,000, or £150,000 for non-residential land and property, are subject to Stamp Duty.
Stamp Duty Tax is due 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
Exemptions to the need to pay stamp duty:
- If you fall into the first-time buyer category and are buying a home for up to £425,000.
- When a portion of a home is transferred to a spouse or partner following a separation or divorce.
- When you transfer the deeds of your home to another person as a gift.
How much will you pay?
Stamp duty rates as of 23 September 2022.
Up to £250,000
0%
Over £250,001 and up to £925,000
5%
Over £925,001 and up to £1,500,000
10%
Over £1,500,000
12%
Click on this link for a helpful calculator showing how much Stamp Duty is payable on residential property.
Second Homes and Buy-to-Let Stamp Duty
Buy-to-Let and second home properties will be subject to an additional 3% Stamp Duty on each band.
When is Stamp Duty payable?
SDLT is payable to the HMRC within 30 days of completion.
Your solicitor, agent or conveyancer will usually file your return and pay the tax on your behalf on the day of completion and add the amount to their fees. Check with your chose solicitor regarding the process they recommend for the payment of any Stamp Duty monies you owe.