Paying stamp duty

What is stamp duty?

Stamp duty is a property tax in England and Northern Ireland that you may have to pay if your purchase a home.

In Scotland, stamp duty is called Land and Buildings Transaction Tax (LBTT). In Wales, it's called Land Transaction Tax (LTT).

The different UK nations have different thresholds and rules regarding the payment of stamp duty.

Do you need to pay stamp duty?

Residential properties

If you're purchasing a residential home in the UK, you may need to pay some form of Stamp Duty.

In England and Northern Ireland, you'll have to pay if you purchase a residential property over £250,000. However, first-time buyers get zero-tax relief up to £425,000 (as long as the property is less than £625,000).

In Scotland, all residential properties over £145,000 are subject to LBTT (although first-time buyers don't need to pay unless the property is over £175,000).

In Wales, residential properties over £225,000 are subject to LTT.

Commercial properties

In England, Northern Ireland and Scotland, you will need to pay stamp duty on a commercial property if it's over £150,000.

In Wales, you will only need to pay stamp duty on properties over £225,000.

New build homes

If you're purchasing a new build home, then it will be subject to the same stamp duty rates as any other residential property.

This means in England and Northern Ireland you'll be required to pay stamp duty if it costs more than £250,000.

How much stamp duty do you need to pay?

The amount of stamp duty you need to pay for a residential home depends on how much it costs. There are different price bands in which different rates apply.

The tables below show the different bands and rates for England and Northern Ireland, Scotland, and Wales.

England and Northern Ireland Stamp Duty thresholds

So, if you bought a home for £300,000 and you're a UK resident, you would pay 0% stamp duty on the amount between £0 and £250,000, and then 5% on the amount between £250,000 and £300,000 (£50,000).

So, you would have to pay £2,500 in Stamp Duty.

Scotland LBTT thresholds

In Scotland, if you purchased a property for £300,000, you would pay 0% on the amount between £0 and £145,000, 2% on the amount between £145,000 and £250,000 (£105,000) and 5% on the amount between £250,000 and £300,000 (£50,000).

So, you would have to pay £4,600 in LBTT.

Wales LTT thresholds

In Wales, if you purchased a property for £300,000, you would pay 0% on the amount between £0 and £225,000 and 6% on the amount between £225,000 and £300,000 (£75,000).

So, you would have to pay £4,500in LTT.

First-time buyer rates

In England and Northern Ireland, first-time buyers get Stamp Duty relief up to £425,000, provided the property is less than £625,000.

In Scotland, first-time buyers get LBTT relief up to £175,000, saving them a maximum of £600 on a property purchase.

In Wales, there's no additional LTT relief for first-time buyers.

Second home rates

If you're already own a home, and are purchasing an additional property worth over £40,000 (whether as a buy-to-let property or as a holiday home), you'll likely be subject to a surcharge in addition to stamp duty.

In England and Northern Ireland, the second home surcharge is 3% on top of the standard Stamp Duty rates.

In Scotland, this surcharge is known as the Additional Dwelling Supplement (ADS) and is 6% of the property price.

In Wales, the LTT second home surcharge is 4%.

When should you pay stamp duty?

You need to pay stamp duty after your completion date, within a set amount of time. In England, it needs to be paid within 14 days.

In Scotland and Wales, it needs to be paid within 30 days.

How can you pay stamp duty?

Your solicitor or conveyancer will normally arrange the payment of stamp duty, LBTT or LTT on your behalf.

If they don't, you may need to file and post a paper return in order to pay this.

Can you get stamp duty refunded?

If you buy another home and aren't able to sell your old home before the completion date of the new sale, you will normally need to pay the second home surcharge.

However, if you then sell your old home within a set amount of time (36 months after completion in England, Northern Ireland and Wales, and 18 months in Scotland), you can normally get this refunded.

You'll need to apply for this refund, which you can do online.