When buying a new property there are lots of things to understand and arrange, and one of these is Stamp Duty. We’ve put together a Stamp Duty Guide to give you some more information on what you can expect to pay depending on the property price, the property location and your ownership history.
What is Stamp Duty?
What is commonly referred to as Stamp Duty (SDLT) is the tax charged by the Government which you pay on completion of a new home. As of the 1st April 2018, Stamp Duty in Wales is now referred to as Land Transaction Tax (LTT).
What discounts or reliefs are there?
The Government has extended the Stamp Duty holiday in England until the end of September 2021, to give homebuyers a helping hand after the recent lockdown period.
From 1st July until 30th September, there will be an interim £250,000 threshold which means that if you buy a new home up to the value of £250,000 there will be no Stamp Duty to pay.
And good news for first time buyers, as the threshold increases to £300,000 so you’ll pay no Stamp Duty on properties up to the value of £300,000 and a discounted rate up to £500,000.
The threshold has been extended for a limited time and will be returning to normal from October 2021 when you’ll pay no Stamp Duty on properties costing up to £125,000, unless you’re a first-time buyer.
In Wales, the current Land Transaction Tax threshold means you do not have to pay LTT on properties up to £180,000.
How much is Stamp Duty?
The percentage of Stamp Duty will be applied to the proportion of the property price within each tax band.
If you are buying a second home or for investment, there is an additional 3% charge on each bracket.
Stamp Duty payable on properties in England from 1st July 2021 until 30th September 2021:
For the latest advice for England and Northern Ireland you can visit the UK Government website.
| Purchase Price | Stamp Duty % |
| Up to £250,000 | 0% |
| £250,001 – £925,000 | 5% |
| £925,001 – £1.5m | 10% |
| Over £1.5million | 12% |
Stamp Duty payable on properties in England from 1st July to 30th September 2021, if you are a first-time buyer:
| Purchase Price | Stamp Duty % |
| £0 – £300,000 | 0% |
| £300,001 – £500,000 | 5% |
Land Transaction Tax (LTT) payable on properties in Wales from 1 July 2021:
For the latest advice for Wales you can visit the Welsh Government website.
| Purchase Price | LTT % |
| £0 – £180,000 | 0% |
| £180,001 – £250,000 | 3.5% |
| £250,001 – £400,000 | 5% |
| £400,001 – £750,000 | 7.5% |
| £750,001 – £1.5million | 10% |
| Over £1.5million | 12% |
