What is stamp duty?
Stamp duty land tax (SDLT) is a progressive tax paid when purchasing a freehold, leasehold or shared ownership residential property over £250,000 in England and Northern Ireland (separate taxes apply in Wales and Scotland).
The rates, which are payable only on the portion of a property price that falls within each band, were updated in the mini budget on 23 September 2022 (valid until 31 March 2025) and are set out below.
How much is stamp duty?
| Brackets |
Rate |
| Up to £250,000 |
0% |
| 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% |
How is stamp duty calculated?
Here is an example of how stamp duty is calculated. Let’s say, the property purchase price is £850,000. In this case, no stamp duty tax applies to the first £250,000 of this amount. The amount above the initial £250,000 has a stamp duty tax of 5%. So, in total this equates to an overall rate of 3.5% of the sale price or £30,000. Rates are higher for buy-to-let properties or second homes. For more information, visit our buy to let stamp duty calculator.
Who pays stamp duty?
Stamp duty tax applies to residential house purchases over a threshold of £250,000. If you’d like to calculate the stamp duty on a non-residential asset, such as a mixed-use property, visit our commercial stamp duty calculator.
How do I pay stamp duty?
In most cases, your solicitor will take care of the paperwork on your behalf. There is an option to do this yourself by following the steps on the UK government website.
When do I pay stamp duty?
Stamp duty is payable to the HMRC 14 days from the date of completion, or you may risk a fine. Your solicitor or legal adviser should take care of this for you within the deadline.
Do first-time buyers pay stamp duty?
Yes, first-time property buyers are subject to stamp duty tax but the rates differ. First-time buyers don’t pay any stamp duty on the first £425,000 and the value of the property on which they can claim this relief is up to £625,000.
Are there any other stamp duty exemptions?
From October 2024, buy-to-let and second home buyers in England and Wales pay an additional 5% on each stamp duty band. To discuss which London or UK areas provide the highest returns on investments, speak to one of our London or regional property experts.
What is the stamp duty rate for non-UK residents?
In April 2021, a 2% stamp duty surcharge for overseas buyers purchasing residential property in England and Northern Ireland was introduced. The surcharge applies to any type of non-resident buyer (company or individual), subject to a few exceptions for specific collective investment vehicles such as real estate investment trusts (REITs). The surcharge is levied in addition to the 5% buy-to-let and second homes charge, the flat 15% stamp duty rate on purchases worth more than £500,000 by companies acting as envelopes, and the existing stamp duty rates for home buyers.
Can I add stamp duty to my mortgage?
Yes, this is possible. Some buyers prefer to add on the stamp duty tax amount to their mortgage loan if they can – speak to a professional mortgage provider at Knight Frank Finance to see if you qualify.
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Please note: this calculator is for general interest only and doesn’t constitute advice. The calculator is being updated to reflect the UK Autumn 2024 Budget, therefore this should not be considered up to date or complete, and relates only to certain types of residential property in England or Northern Ireland. Always take tailored advice from your property lawyers, accountants, or other financial advisers on tax issues.