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?
Following the extension to the Government Stamp Duty Holiday, if you purchase and complete on a residential property in England between 8th July 2020 and 30th June 2021 as your main residence, you will have no SDLT to pay on properties up to £500,000 and for homes over £500,000 you will save £15,000. These rates apply whether you are buying your first home or have owned property before.
From 1st July until 30th September, there will be an interim £250,000 threshold, returning to normal from October 2021. If you are a first-time buyer and the purchase price is under £300,000 you will pay no Stamp Duty. If the purchase price is between £300,001 and £500,000 you will only pay 5% Stamp Duty on this portion.
The Welsh Government announced changes in 2020 to the Land Transaction Tax threshold meaning you do not have to have LTT on properties up to £250,000. This change took effect on 27 July 2020 and now applies until 30th June 2021. It does not apply to second homes.
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 until 30th June 2021:
For the latest advice for England and Northern Ireland you can visit the UK Government website.
| Purchase Price | Stamp Duty % |
| £0 – £500,000 | 0% |
| £500,001 – £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 an existing homeowner:
| Purchase Price | Stamp Duty % |
| £0 – £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:
For the latest advice for Wales you can visit the Welsh Government website.
| Purchase Price | LTT % |
| £0 – £180,000 | 0% |
| £180,001 – £250,000 | 0% |
| £250,001 – £400,000 | 5% |
| £400,001 – £750,000 | 7.5% |
| £750,001 – £1.5million | 10% |
| Over £1.5million | 12% |
