What is stamp duty in the UK?

When buying property in the UK, you'll need to pay a tax on your purchase. In England, this is called Stamp Duty Land Tax (SDLT), while Wales has its own system called Land Transaction Tax (LTT). Both are commonly referred to as "stamp duty."

This guide will explain how much you'll need to pay, when you need to pay it, and whether you might qualify for any tax relief - particularly if you're a first-time buyer. The rules and rates differ depending on whether you're buying in England or Wales, so we'll cover both regions separately.

In England, the tax is called Stamp Duty Land Tax (SDLT), which doesn’t help with the confusion between this and Stamp Duty.

It is paid to Her Majesty’s Revenue and Customs (HMRC).

For residential house purchases, the current rates are displayed to the right.

Please note that the higher rates apply in various circumstances. The most common of which is if you own several properties and don’t intend to live in the property you are buying as your main residence.

 

The portion up to and including	Rate	Higher rate
Up to £125,000	0%	5%
£125,001 to £250,000	2%	7%
£250,001 to £925,000	5%	10%
£925,001 to £1.5 million	10%	15%
Over £1.5 million	12%	17%

First-time buyers can claim a relief if they purchase their first home. This means they will
pay:

• 0% on purchases up to £300,000
• 5% on the portion between £300,001 and £500,000
• For purchases above £500.000, the same rules apply as for those who have
  purchased a home before.

The government defines first-time buyers as “an individual or individuals who have never
owned an interest in a residential property in the United Kingdom or anywhere else in the
world and who intends to occupy the property as their main residence”.