How much is Stamp Duty?
You pay 0% for the first £125,000, 2% on the portion up to £250,000, 5% up to £925,000, 10% up to £1.5m and 12% on anything above that.
|Minimum property purchase price||Maximum property purchase price||Stamp Duty rate (only applies only to that part of the property price that falls within each band)|
|Over £1.5 million||12%|
For example, if your new home costs £175,000 you’ll pay £1,000 (2% of the
property value that falls within the relevant band).
Use our Stamp Duty calculator to find out how much you’ll pay.
How to pay Stamp Duty
You’ll need to submit a Stamp Duty Land Tax return and pay what you owe within 30 days of completion.
If the price of your new home is under £125,000, you must still submit a return even though you won’t need to pay any Stamp Duty.
Usually your solicitor will deal with the Stamp Duty return and payment for you, although you can do it yourself.
But either way, you’re responsible for making sure it’s all submitted on time. If it’s not paid, you’ll be charged a £100 penalty plus interest.
When is Stamp Duty not payable?
You’ll automatically avoid Stamp Duty if you buy a property below £125,000 but for many people this just isn’t possible.
There are other circumstances in which Stamp Duty is either not payable or can be reduced:
- If the price is only just within a higher band, ask the seller or estate agent if they would accept a slightly lower price.
- If you are divorcing or separating from your spouse or partner, there’s no Stamp Duty to pay if you transfer a proportion of your home’s value to them.
- Read more in our guide Protecting your home ownership rights during divorce or dissolution.
- If you transfer the deeds of your home to someone else – either as a gift or in your will – they won’t have to pay Stamp Duty on the market value of the property. To find out more about transfer of deeds, go to the GOV.UK website.
- However, if you exchange properties with another person, you will each have to pay Stamp Duty on the property you receive based on its market value.
Find out about other situations where Stamp Duty may not be payable on the GOV.UK website.
Ready for your big home move? Read our guide Estimate your overall buying and moving costs.
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