Stamp Duty (SDLT)


Stamp Duty (SDLT) Overview

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Stamp Duty is a tax you might have to pay if you buy a residential property or a piece of land in England and Northern Ireland.

If you’re buying your main property up until 30 June 2021, you will not have to pay Stamp Duty on properties costing up to £500,000. This will apply whether you’re a first-time buyer or have previously owned a property.

Properties costing more than £500,000 will pay the Stamp Duty rate based on the value of the property over £500,000.If you’re buying a second home, you’ll still pay Stamp Duty on a property costing more than £40,000 at the revised rates – paying an extra 3%.This tax applies to both freehold and leasehold properties – whether you’re buying outright or with a mortgage.

If you’re buying a property in Scotland, you will pay Land and Buildings Transaction Tax (LBTT) and in Wales Land Transaction Tax (LTT) instead of Stamp Duty.

How much is Stamp Duty?

There are several rate bands for Stamp Duty. The tax is calculated on the part of the property purchase price falling within each band.

When do you have to pay Stamp Duty?

You have 14 days to file a Stamp Duty Land Tax (SDLT) return and pay any SDLT due.If you don’t submit a return and pay the tax within 14 days, HMRC might charge you penalties and interest.

When is Stamp Duty not payable?

There are other circumstances in which Stamp Duty is either not payable or can be reduced:

  • Slightly over rate band. If the price is only just within a higher band, ask the seller or estate agent if they would accept a slightly lower price.
  • Transfer of property in separation or divorce. If you’re divorcing or separating from your spouse or partner, there’s no Stamp Duty to pay if you transfer a proportion of your home’s value to them.
  • Transfer of deeds. If you transfer the deeds of your home to someone else – either as a gift or in your will – they won’t have to pay Stamp Duty on the market value of the property.
However, if you exchange properties with another person, you will each have to pay Stamp Duty on the property you receive based on its market value.