What is Stamp Duty?

Stamp Duty Land Tax, often referred to as SDLT or Stamp Duty, is a tax due on all property purchases, new or pre-owned.

Following the latest Government announcement, Stamp Duty Land Tax only applies to properties worth over £500,000 in England, applicable to both first-time buyers or if you have owned a home before. Meaning you could save up to £15,000 if you purchase your home before 30th June 2021. Following this, the limit will change to £250,000 until 30th September 2021.

How do you pay Stamp Duty?

Your solicitor or conveyancer is normally the person who calculates and pays your Stamp Duty on your behalf, however you can pay HMRC directly if you so choose. All Stamp Duty must be paid within a maximum of 14 days after completion.

How much will I have to pay?

Following the latest Government announcement, there is no stamp duty due on properties under £500,000. For properties over £500,000 the stamp duty due will range from 5% up to 12%. The tax in the rate bands increases with the overall property value at the time of purchase.

Rates on your first home

First-time buyers do not pay Stamp Duty on the first £500,000 of their home. Therefore, if you buy your first home for less than this, you will not pay any Stamp Duty.

Home mover rates

When you buy a property you're planning to live in (and you've owned a property before), you'll pay Stamp Duty on each portion of the property price, however you won’t pay any if you buy a residential property that costs less than £500,000 until 30th June 2021 in England.

Rates on a second home

Don't forget if you’re purchasing a second home or have the intention of renting your newly-purchased property out, then higher rates of Stamp Duty are typically imposed. This usually means that an extra rate of 3% is added to the standard Stamp Duty tax bands.