Standard Stamp Duty FAQs
Who has to pay Stamp Duty Land Tax?
All property buyers must declare the circumstances of any land transaction to Her Majesty's Revenue & Customs (HMRC). SDLT is payable when you:
- buy a freehold property
- buy a new or existing leasehold
- buy a property through a shared ownership scheme
- are transferred land or property in exchange for payment, e.g. you take on a mortgage or buy a share in a house.
You don’t have to pay SDLT under certain circumstances, such as:
- Where no money or other payment changes hands for a land or property transfer
- Where the property is inherited under a Will
- Property is transferred because of divorce or dissolution of a civil partnership
- Where a freehold property is purchased for less than £40,000
- Where you are a first time buyer purchasing a property with a value of £300,000 or less
- Upon the purchase or assignment of a lease of 7 years or more, so long as the premium is less than £40,000 and the annual rent is less than £1,000
- Upon the purchase or assignment of a lease of less than 7 years, as long as the amount paid is less than the residential or non-residential SDLT threshold.
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How much Stamp Duty Land Tax do I have to pay?
Rates up to 31 March 2025
The amount of SDLT you must pay depends on the value of the property. SDLT is payable in increasing portions of the property price above £250,000:
| Property/Lease Premium Or Transfer Value |
SDLT Rate |
| Up to £250,000 |
Zero |
| The next £675,000 (the portion from £250,001 to £925,000) |
5% |
| The next £575,000 (the portion from £925,001 to £1.5 million) |
10% |
| The remaining amount (the portion above £1.5 million) |
12% |
Rates from 1st April 2025
The amount of SDLT you must pay depends on the value of the property. SDLT is payable in increasing portions of the property price above £125,000:
| Property/Lease Premium Or Transfer Value |
SDLT Rate |
| Up to £125,000 |
Zero |
| The next £125,000 (the portion from £125,001 to £250,000) |
2% |
| The next £675,000 (the portion from £250,001 to £925,000) |
5% |
| The next £575,000 (the portion from £925,001 to £1.5 million) |
10% |
| The remaining amount (the portion above £1.5 million) |
12% |
For example, a property bought for £180,000 will be taxed at 0% for the first £125,000 and 2% for the next £55,000 so you will pay £1,100 in SDLT. If you are a first time buyer in England or Wales, you would not need to pay SDLT on this property.
Someone buying a £400,000 property would be charged 0% for the first £125,000, 2% for the next £125,000 and 5% for the remaining £150,000 which gives a total of £10,000 of SDLT to pay. If you are a first time buyer in England or Wales, you would be charged 0% for the first £300,000, and 5% for the next £100,000, for a total of £5,000 SDLT to pay.
You may also be liable to pay 5% on top of the normal SDLT rates if buying a new residential property as a second home or investment property. This additional 5% rate may apply even if the property you already own is outside England, Wales and Northern Ireland.
HMRC looks closely at transactions where the purchase price has been divided between land, and fixtures & fittings. HMRC are able to charge additional tax if they find that your declaration does not match the true value of these items,
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When do I pay Stamp Duty Land Tax?
In most cases, an SDLT return is sent to HMRC and the tax is paid within 14 days of completion of the purchase. There are certain exceptions to this where you don’t need to send an SDLT return.
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Do first time buyers have to pay Stamp Duty Land Tax?
Discount up to 31 March 2025
If you’re buying your first home for £425,000 or less, you don’t have to pay any stamp duty. If the property is worth between £425,000 and £625,000, you’ll only pay stamp duty on the amount between £425,001 and £625,000, at a rate of 5%. There is no relief for properties bought for over £625,000.
Discount from 1 April 2025
If you’re buying your first home for £300,000 or less, you don’t have to pay any stamp duty. If the property is worth between £300,000 and £500,000, you’ll only pay stamp duty on the amount between £300,001 and £500,000, at a rate of 5%. There is no relief for properties bought for over £500,000.
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If you would like help with paying SDLT or any other part of the conveyancing process, our specialist conveyancing solicitors can help. Call our team today on 0370 1500 100 to find out more.
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All Scottish cases will be handled by the Scottish law firm with which we are associated, Irwin Mitchell Scotland LLP. The law relating to conveyancing and property is different in Scotland and you will receive separate advice about what that means. Please visit our Scottish Conveyancing page for more information.
