Stamp Duty

Here’s everything you need to know about stamp duty.

What is Stamp Duty?

Stamp Duty Land Tax (SDLT) is the tax that must be paid when you purchase a property or a piece of land. The amount of money required for stamp duty depends on the overall price of the property as well as factors like whether it is residential or non-residential and whether or not you are a First Time Buyer.

How much will you pay?

If the property is worth between £125,001 and £250,000, the stamp duty land tax rate is 2%. So if the property was valued at £250,000, you have to pay an extra £5000 in stamp duty tax.

For the next £675,000, the rate is 5%. If the property you are purchasing was valued between £250,001 and £925,000 bracket, the buyer will not pay any stamp duty on the first £125,000 but will pay a 2% rate on the next £125,000 and a 5% rate on the following £675,000.

First-time buyers in England and Northern Ireland are required to pay stamp duty. However, it does not apply to the first £425,000 of a main residential property if it costs less than £500,000.

In Wales, buyers are exempt from land transaction tax on the initial £180,000 of their home. In Scotland, buyers don’t have to pay land and buildings transaction tax on the first £175,000 of the sale.

Purchase price	Stamp Duty Rate	Additional property rate
Up to £250,000 (£425,000 for first-time buyers)	0%	3%
£250,001 - £925,000	5%	8%
£925,001 - £1,500,000	10%	13%
£1,500,001+	12%	15%
(1) Rate applies to that portion of the purchase price. (2) Additional properties bought for less than £400,000 will be charged the main residence rate of stamp duty. (3) The £425,000 first-time buyer stamp duty threshold does not apply if the property you are buying costs more than £625,000 - if it does, you'll pay the normal rate of stamp duty.

What is Land and Buildings Transaction Tax?

Land and Buildings Transaction Tax (LBTT) is the tax that must be paid when you purchase a property or a piece of land. It is administered by Revenue Scotland, with support from Registers of Scotland.

LBTT replaced UK Stamp Duty Land Tax in Scotland on 1 April 2015.

Similar to Stamp Duty, the amount of money required depends on the overall price of the property as well as factors like whether it is residential or non-residential and whether or not you are a First Time Buyer or purchasing an additional dwelling.

Purchase price	LBTT % Rate	LBTT % Rate - Additional Properties
Up to £145,000 (£175,000 for first time buyers)	0%*	For transactions on or after 16 December 2022 the ADS is 6% of the purchase price.
£145,001 - £250,000	2%*
£250,001 - £325,000	5%
£325,001 - £750,000	10%
Over £750,000	12%
(1) Additional properties bought for less than £40,000 will be charged the main residence rate of stamp duty.

What is Land Transaction Tax?

Land Transaction Tax is the tax that must be paid when you purchase a property or a piece of land. It is collected by the Welsh Revenue Authority. Similar to England’s Stamp Duty, the amount of money required depends on the overall price of the property as well as factors like whether it is residential or non-residential and whether or not you are a first-time buyer or purchasing an additional dwelling.

Welsh Land Transaction Tax Changes

House price example	LTT % Rate	LTT % Rate - Additional Property
Up to £225,000	0%	4% (on portion up to £180,000) 7.5% (on the portion between £180,001 - £250,000)
£225,001 - £400,000	6%	9%
£400,001 - £750,000	7.5%	11.5%
£750,001 - £1,500,000	10%	14%
£1,500,001+	12%	16%

Stamp Duty

Stamp duty calculator

What is Stamp Duty?

How much will you pay?

What is Land and Buildings Transaction Tax?

What is Land Transaction Tax?

Welsh Land Transaction Tax Changes

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