A Quick Guide to Stamp Duty


What is Stamp Duty?

Stamp Duty Land Tax is a tax paid on all properties purchased in England and Northern Ireland and is payable on both residential and non residential land and properties. In Scotland it’s called Land and Buildings Transaction Tax and in Wales it’s known as Land Transaction Tax

Is there a threshold for paying Stamp Duty?

The current SDLT threshold is £125,000 for residential properties and £150,000 for non-residential land and properties (thresholds may differ in Scotland and Wales).

Are there any exceptions? 

First time buyers are exempt from paying Stamp Duty up to £300,000 and pay 5% between £300,000 and £500,000. You can find out if you qualify for Stamp Duty Land Tax reliefs or exemptions on the Government website.

How much do I have to pay?

Find out how much Stamp Duty you have to pay online using the Government’s Stamp Duty Land Tax (SDLT) calculator

How do I pay?

If you have a solicitor, agent or conveyancer, they’ll usually file your return and pay the tax on your behalf on the day of completion and add the amount to their fees. They’ll also claim any relief you’re eligible for, such as if you’re a first-time buyer. If they don’t do this for you, you can file a return yourself and make the payment yourself online, by CHAPS, at your bank or building society, by BACs or by cheque.

How long do I have to make the payment?

You must send an SDLT return to HMRC and pay the tax within 14 days of completion. You may be charged penalties and interest if you fail to do so within this time. 

Further information about Stamp Duty can be found by clicking on the links within this article, which will take you to the relevant pages on the Government’s website.