What is stamp duty?
If the property you are buying is worth more than £125,000, then you will have to pay Stamp Duty Land Tax (SDLT) in England or Northern Ireland.
What is stamp duty payable on?
Stamp duty is payable on both freehold and leasehold properties costing in excess of £125,000.
First-time buyers do not pay SDLT on properties worth up to £300,000. Over that amount (up to £500,000), SDLT is due at 5%.
If the property is over £500,000, first-time buyer relief does not apply and standard rates are used.
SDLT for new-build properties remains under the same rate bands, though some builders may offer incentives.
On shared ownership properties, stamp duty can vary; you can choose to pay SDLT on your ownership percentage or on the full purchase price (if you expect to stair-step later).
How is stamp duty calculated?
The amount of SDLT you pay is based on a percentage applied to portions of the purchase price:
| Purchase Price | Stamp Duty % |
| Upto £125,000 | 0% |
| £125,001 to £250,000 | 2% |
| £250,001 to £925,000 | 5% |
| £925,001 to £1,500,000 | 10% |
| Above £1,500,000 | 12% |
These rates apply to property purchased in England and Northern Ireland.
If you already own a main residence and are purchasing an additional property (e.g. buy-to-let, holiday home), an additional 5% surcharge (on top of the above rates) applies. (Previously this surcharge was 3%, but it increased to 5% effective 31 October 2024.)
Also, non-UK residents pay an extra 2% surcharge on top of any applicable SDLT (including the additional property surcharge, if relevant)
Stamp duty exemptions
There are some scenarios in which SDLT does not apply:
- Where one partner transfers equity to the other (e.g. during divorce or separation)
- First-time buyers (for properties ? £300,000, and partial relief for amounts between £300,001 and £500,000)
- If the property is gifted.
- If the property is received through inheritance or in a will.
- If the property is freehold and costs less than £40,000.
Is stamp duty different in Scotland?
In Scotland, property purchases are liable for Land and Buildings Transaction Tax (LBTT);
| Purchase Price | LBTT % |
| Up to £145,000 | 0% |
| £145,001 to £250,000 | 2% |
| £250,001 to £325,000 | 5% |
| £325,001 to £750,000 | 10% |
| Above £750,000 | 12% |
First-time buyer relief in Scotland raises the zero-rate threshold from £145,000 to £175,000, so first-time buyers pay no LBTT on the first £175,000.
If purchasing a second home or additional property in Scotland, there is an Additional Dwelling Supplement (ADS) surcharge that applies on the full purchase price. As of December 2024, the ADS was increased from 6% to 8%. Thus, second homes are taxed at standard LBTT + 8% ADS.
