Stamp duty land tax (SDLT) is payable on every residential property purchase in England and Northern Ireland that falls above a certain price.
The amount you will need to set aside for SDLT will depend on the price and type of your property. Please note that stamp duty tax has been replaced by a Land and Buildings Transaction Tax in Scotland, and a Land Transaction Tax in Wales.
Use our handy residential stamp duty calculator above to see how much tax you will need to pay.
What SDLT relief is available for first-time buyers?
If you’re a first-time buyer in England or Northern Ireland, then as of 1st July 2021, you will not need to pay any stamp duty land tax on a residential property worth up to £300,000. If your property is worth between £300,000 and £500,000, you will only need to pay SDLT on the difference, at a rate of 5%.
To be eligible, you will need to be purchasing your main place of residence. You also must never have owned a freehold or had a leasehold interest in a residential property, either here in the UK or abroad.
Check with your mortgage broker to see if you qualify for first-time buyers’ stamp duty relief.
What if you’re not a UK resident?
From 1st April 2021, non-UK residents purchasing a residential property in England or Northern Ireland will need to pay an additional 2% on top of the current stamp duty rates that apply to properties costing more than £40,000.
When will stamp duty need to be paid?
You will need to file a stamp duty land tax return and pay any tax due within 14 days of completing on your new residential property. If you miss this deadline, you may receive a fine.
Your solicitor or legal advisor will usually be responsible for arranging your SDLT payment (unless you have decided to add the stamp duty amount to your mortgage loan).
Can you reduce the amount of stamp duty you need to pay?
Everything that is physically attached to your residential property will be subject to SDLT. However, any additional chattels included in the purchase – such as wardrobes, sofas, white goods, carpets, curtains, and other ‘removable’ fixtures – can be bought directly from the vendor, with the agreed amount being subtracted from the purchase price.
You may also wish to renegotiate with the seller or their estate agent the property’s price if it falls slightly over the rate band.
In some cases, stamp duty will not be payable on your purchase at all. For example, you will not be liable for SDLT if you transfer the deeds of your home to somebody else, either as a gift or as a wish in your Will. You will also not need to pay stamp duty if you are transferring a proportion of your home’s value to your ex-spouse or ex-partner during separation or divorce.
What if it takes a while to sell your previous residence?
Technically, if you purchase a new residence but there’s a delay in selling your previous home, you’ll own two properties – and this will make you liable to pay the higher stamp duty rates.
However, you can apply for a refund on the higher stamp duty rate of your overall stamp duty tax bill if:
You sell your previous main residence within three years of purchasing your new residence
You claim your refund within 3 months of selling your previous main residence, or within 12 months of filing your stamp duty tax return – whichever comes later.
What about stamp duty on Buy to Let properties and second homes?
Buy to Lets and second homes are subject to an extra 3% in SDLT on top of the revised rates in each band, as outlined above, on properties worth over £40,000.
From 1st July 2021 onwards, investors and those wishing to purchase a second property will pay an extra 3% on the rates that are applicable from this point onwards.
What are the stamp duty rates for commercial properties?
At the time of writing, UK residents are required to pay stamp duty on non-residential assets that are above the value of £150,000.
Commercial assets include offices, shops, retail units, warehouses, factories, garages, workshops, mixed-use buildings, and agricultural land.
Here’s how the rates break down for commercial purchases:
|Purchase Price Bands (£)||Rate (%)|
|Up to £150,000||0%|
|£150,001 to £250,000||2%|
|The remaining amount (the portion above £250,001)||5%|
The FCA does not regulate commercial mortgages. We act as an introducers for Commercial Mortgages.
Get in Contact
Drop us your details to arrange your initial consultation with one of our mortgage brokers.