Stamp Duty

Whether you are a first-time buyer or an experienced home mover, it can be a little daunting when it comes to fully understand every step and financial commitment you need to make when purchasing a home.

Stamp Duty is one element of your home purchase you must be aware of, and be prepared for, but many buyers are unsure as to exactly what it is.

What is Stamp Duty?

Stamp Duty Land Tax (SDLT) is a tax that the government charges to homeowners buying property or land within England and Northern Ireland. Please note: tax requirements are different within Scotland and Wales.

Stamp duty must be paid within 14 days of completion.

Who is eligible for Stamp Duty?

Stamp Duty is charged when you:

  • Purchase a freehold property
  • Purchase a new or existing leasehold
  • Purchase a property through a shared ownership
  • Are transferred land or a property in exchange for payment.

Current Stamp Duty theshold

The current threshold for Stamp Duty is set at properties valuing more than £125,000.

From 1st April 2021, the thresholds for Stamp Duty tax will be as follows:

 

In addition, first-time buyers will receive a discount from 1st April 2021 if the following conditions are met:

How is Stamp Duty calculated?

The amount you need to pay is based on property value banding but is a percentage of the total value of your property.

Below is an example chart of the property value to SDLT rate that you can expect to pay from 1st April 2021:

 

Property price

Stamp Duty Tax rate

Up to £125,000

0%

£125,001 – £250,000

2%

£250,001 – £925,000

5%

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