Published: 1 April 2025
Last updated on 6 October 2026
Stamp Duty Land Tax (SDLT) usually referred to as Stamp Duty is a tax you may have to pay when you buy a property (or land) in England and Northern Ireland.
If you’re buying a property in Scotland then Land and Buildings Transaction Tax (LBTT) applies and in Wales it’s Land Transaction Tax (LTT).
This article will focus on Stamp Duty.
What is Stamp Duty?
You pay Stamp Duty when:
- buying a freehold property
- buying a new or existing leasehold property
- buying a Shared Ownership property
- receiving land or property in exchange for payment
Stamp Duty usually doesn’t apply if the property is:
- A gift (with no outstanding mortgage on the property) or left to you in a Will
- Being transferred as part of a divorce, separation or the end of a civil partnership
It is also worth noting that:
- If joint owners are unmarried and not in a civil partnership and transfer an interest in land or property from one joint owner to another then Stamp Duty may apply.
- There are also different rules which apply to Shared Ownership property.
If you’re looking at purchasing a property, it’s worth seeking independent financial advice for your situation to understand the likely taxes that will apply and the costs.
Do you pay stamp duty on a house you sell?
No - Stamp Duty is only paid by the person/people buying the property, not the person selling it. So, if you’re putting your current home up for sale, stamp duty charges won’t apply. But you might have to pay Stamp Duty if you’re buying another property.
How much is Stamp Duty?
How much Stamp Duty you pay will depend on whether the property will be used as a residential or non-residential property and if you’re eligible for an exemption. It also depends on whether you’re a first time buyer or an existing homeowner or you own more than one home.
The amount you pay is usually based on the price of the property (also known as the consideration). But it may also include other types of payment such as transfer of an outstanding mortgage.
There are different ‘thresholds’ when paying Stamp Duty. Residential property thresholds are:
| Property price | Stamp duty rate | Stamp duty rate for first time buyers |
|---|---|---|
| £0-£125,000 | 0% | 0% |
| £125,001-£250,000 | 2% | 0% |
| £250,001-£300,000 | 5% | 0% |
| £300,001-£925,000 | 5% | 5% |
| £925,001-£1.5m | 10% | 10% |
| £1.5m+ | 12% | 12% |
The rates are for the purchase of a single residential property, if the purchase means that you will own more than one home then there is usually an additional 5% on top of the rates.
Remember, Stamp Duty is paid at the rate of tax for each band that the purchase price falls within. So, not a single % for the whole amount.
For example, if you buy a house for £295,000, the Stamp Duty you owe would be calculated as follows:
- 0% on the first £125,000 = 0
- 2% on the next £125,000 = £2,500
- 5% on the next £45,000 = £2,250
So, the total Stamp Duty to pay in this example would be £4,750.
Do first time buyers pay Stamp Duty?
Yes, first time buyers pay stamp duty but can qualify for First Time Buyers Relief – this depends on the selling price of the property.
First time buyers may qualify if everyone buying have never previously owned a residential property before and intend to occupy the property as their main residence.
First time buyers pay:
- 0% on the first £300,000
- 5% on the portion between £300,001 and £500,000
- If the property costs over £500,000 then you cannot claim the relief. You will need to follow the rules and rates for people who have bought a home before.
When do you pay Stamp Duty?
You must send a stamp duty return to HMRC and pay any tax due within 14 days of the effective date of the transaction, which is usually the completion date. HMRC may charge a late-filing penalty if the return is submitted late and you may also need to pay an interest charge if the tax is paid late.
How is my Stamp Duty paid?
Usually, your solicitor or conveyancer will determine the amount to be paid and manage this for you including any paperwork – always check this is case as it’s your responsibility to ensure everything’s paid on time.
The Stamp Duty thresholds can be changed by the government at any time. It is your responsibility to check that you have up to date information and work out the correct payment.
Can you add Stamp Duty to a mortgage?
You can’t add Stamp Duty directly to your mortgage, but you may be able to borrow more to cover the cost. But bear in mind this will increase your overall loan amount and monthly mortgage repayments.
This guide is not to be taken as advice. You should seek independent financial or legal advice if needed.
