Stamp Duty Land Tax
Stamp Duty Land Tax (SDLT) is a tax that you have to pay when you buy a house in England or Northern Ireland. If it is your first and primary home, you’re liable to pay on property that costs more than £125,000. If it is your second home, you’re liable to pay Stamp Duty Land Tax on any property that costs more than £40,000.
Click here to read about buying property in Scotland.
When does Stamp Duty apply?
Whether you’re buying a property outright or you’re buying it with a mortgage agreement, you’ll be liable to pay stamp duty tax.
Stamp Duty tax rates
The rates that you pay depend on the price of the property that you’re buying. Take a look at the table below to see what you could owe if you’re looking to buy:
| Property Price | Stamp duty rate |
|
Up to £125,000 |
0% |
| £125,001 – £250,000 | 2% |
| £250,001 – £925,000 | 5% |
| £925,001 – £500,000 | 10% |
| More than £500,000 | 12% |
First-time buyers
For first-time buyers, there is a tax relief when it comes to Stamp Duty. On properties worth up to £300,000, first-time buyers don’t have to pay any stamp duty. On properties worth up to £500,000, you don’t pay the tax on the first £300,000.
For properties worth more than £500,000, first-time buyers are unfortunately no longer eligible for the relief.
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