Stamp Duty Land Tax (SDLT) is a tax that homebuyers in England and Northern Ireland pay when purchasing property. This guide explains what stamp duty is, how it’s calculated, and who needs to pay it.
What is Stamp Duty?
Stamp Duty is a tax on property purchases above a certain price threshold. The rate varies depending on the property price, type, and whether you’re a first-time buyer or purchasing an additional property.
Current Stamp Duty Rates (2024/2025)
Up to £250,000: 0%
£250,001 to £925,000: 5%
£925,001 to £1.5 million: 10%
Above £1.5 million: 12%
First-Time Buyer Relief
Up to £425,000: 0%
£425,001 to £625,000: 5%
How to Calculate Stamp Duty
Example: Buying a home for £300,000:
£250,000 at 0% = £0
£50,000 at 5% = £2,500
Total Stamp Duty = £2,500
Who Pays Stamp Duty?
All homebuyers in England and Northern Ireland.
Scotland and Wales have different taxes: LBTT in Scotland and LTT in Wales.
When is Stamp Duty Paid?
Within 14 days of completing the property purchase.
Exemptions and Discounts
First-time buyers under £425,000.
Inherited properties (usually exempt).
Tools to Calculate Stamp Duty
Gov.uk Calculator
Final Thoughts
Understanding stamp duty is essential when buying property in the UK. Use available tools to estimate costs and ensure timely payments.
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