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how much is stamp duty

How much is stamp duty and when do I pay?

Stamp duty has changed. Rates for additional homes such as Buy to Let properties are going up. Here's what you need to know to understand the way stamp duty works and how much stamp duty you will have to pay.

1. What is stamp duty and who pays it?

  • Stamp Duty — Stamp Duty Land Tax (SDLT) official jargon — is a tax you pay when you buy a home
  • The buyer pays stamp duty –  not the person selling
  • Stamp duty applies to both freehold and leasehold purchases over £125,000

2. How much stamp duty do I have to pay?

See the table below for current stamp duty rates.

how much stamp duty do I pay on first and second home or buy to let property

Higher rates of stamp duty are charged on the purchase of additional properties like buy-to-lets and second homes. See our advice guide for more information on  buy-to-let properties and buy-to-let mortgages

Stamp duty calculator

Stamp duty is calculated in the same way income tax works.  For example, if the agreed purchase price is £275,000, stamp duty (if this is the first property you own) is calculated as follows:

0% on the first £125,000 = £0
2% on the next £125,000 = £2,500
5% on the final £   25,000 = £1,250
Total stamp duty payable = £3,750

To calculate exactly how much stamp duty you will need to pay, use our free stamp duty calculator

3. Does stamp duty apply to fixtures and fittings?

  • Stamp duty does NOT apply to removable fixtures or “chattels” like freestanding furniture, carpets or curtains. But it does apply to fixtures and fittings like bathroom and kitchen fittings, and built in wardrobes, which are attached to the building
  • You can reduce your stamp duty bill by subtracting the value of removable fittings from the total price of the property. For example, if carpets are included in the sale of a flat, the buyer and seller must agree a realistic price which reflects their age and quality, and then subtract it from the total price to calculate the stamp duty
  • Buyers have been known to try to reduce their stamp duty bills by massively exaggerating the value of fixtures, but the HMRC has cracked down on this. You should expect to be able to justify the value of the fixtures to the taxman

4. Are there any exceptions?

  • Homes registered to companies rather than individuals and cost more than £500,000 have a rate of 15%
  • Charities may be able to get relief from stamp duty when they buy land and property for charitable purposes
  • Right to Buy transactions may qualify for stamp duty discounts
  • A relief from stamp duty may be available where a registered social landlord buys land and property
  • Zero-carbon homes (including flats) under £500,000 are exempt from stamp duty. Zero-carbon homes over £500,000 have their stamp duty bill reduced by £15,000
  • A full list of stamp duty (STLD)  exemptions and reliefs are listed on the HMRC website

5. When do I have to pay stamp duty?

You have to pay within 30 days of the day on which you are entitled to take possession of your new house. You still have to submit a return even if you are not due to pay any stamp duty on the purchase price of your property, unless the property costs less than £40,000.  Your solicitor or conveyancer should ensure that you do not miss the deadline.


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31 Comments

  1. Hi Peter,

    If you already own a property, you will have to disclose this to the solicitor or conveyancer acting for you on your purchase and they will be able to advise you on how to prove the valuation and legitimately avoid the 3% stamp duty surcharge on second homes. Perhaps you can use the tax authority’s records. Failure to disclose your ownership of it could cause you real difficulties in future so it’s best to be up front from the outset. If you have not yet instructed a solicitor or conveyancer, please consider becoming a member of HomeOwners Alliance – membership entitles you to a 10% discount on conveyancing fees. Best of luck with your purchase!

    Kind regards,

    Sophie
    HomeOwners Alliance Team

    Comment by Sophie Khan — October 27, 2016 @ 7:01 pm

  2. Hello,
    We are buying our first home in England with my wife. I inherited a flat back home 20 years ago when my father died. The flat’s 50% is on my mum’s name, 25% on my brother’s name and 25% is on my name. The property worths about £20000. Do i need to pay the additional 3% stamp duty?
    Thanks for your answer in advance
    Peter

    Comment by Peter — October 27, 2016 @ 11:14 am

  3. Hi Emma,

    If you already own a property, you will have to disclose this to the solicitor or conveyancer acting for you on your purchase and they will be able to advise you on how to prove the valuation and legitimately avoid the 3% stamp duty surcharge on second homes. Perhaps you can use the tax authority’s records. Failure to disclose your ownership of it could cause you real difficulties in future so it’s best to be up front from the outset. If you have not yet instructed a solicitor or conveyancer, please consider becoming a member of HomeOwners Alliance – membership entitles you to a 10% discount on conveyancing fees. Best of luck with your purchase!

    Kind regards,

    Sophie
    HomeOwners Alliance Team

    Comment by Sophie Khan — October 20, 2016 @ 1:11 pm

  4. Hi,
    My husband and I are buying our first home. I already own a property abroad, the value of which is 42,000 euros (less than £40,000) based on the foreign tax authority’s records while the actual market value is even lower. I believe that because of the value of the existing property we are exempt from the extra stamp duty. How will I be able to prove the value in the UK?
    Thanks,
    Emma

    Comment by Emma — October 18, 2016 @ 2:07 pm

  5. Dear Louie,
    Thanks for you query about stamp duty. Do have a look our guide on this: Stamp Duty Surcharge – your questions answered
    You can also try out our handy online tool: Stamp duty Calculator. We also have this: Step-by-step guide to selling your home

    Wish you the very best with your new move.

    Kind regards,

    Sophie
    HomeOwners Alliance Team

    Comment by Sophie Khan — October 13, 2016 @ 2:16 pm

  6. Hi I have recently got married and my new wife and I want to sell her existing home and buy a new one between us. I already have a property and wish to rent it in the future.
    What stamp duty would we have to pay on our new home ? would we have to pay the additional rate ? or will the new home be treated as our main residence therefore the lower rate applies
    Many thanks

    Comment by Louie — October 13, 2016 @ 8:40 am

  7. Dear Ray,

    Thank you for your query. The stamp duty is 2% which comes to £5,000 as its not a second home or buy to let. It’s only 2% for the part above £125,000 – so it amounts to £100 (assuming it is not a second home). You should also confirm with your solicitor the correct amount. Have a look at our: Stamp Duty Calculator. Also do have a read of our guide here: How much is stamp duty and when do I pay?.

    Kind regards,

    Sophie
    HomeOwners Alliance Team

    Comment by Sophie Khan — September 22, 2016 @ 11:55 am

  8. I have a realtor telling me that I have to pay 1300 pounds stamp duty on a home purchase of 130,000 pounds
    is this correct?
    This is my only home.

    Comment by RAY SHELLAM — September 11, 2016 @ 11:48 pm

  9. Hi Rita,

    One of our experts would be more than happy to answer your query if you were to join as a member. Joining is easy and only costs £45 for the year. Sign up easily here.

    Thanks,

    Sophie
    HomeOwners Alliance Team

    Comment by Sophie Khan — August 22, 2016 @ 7:59 pm

  10. We are looking to move from Scotland back to England. Its taken that once the letter of acceptance is received, the purchaser is tied. I have to say, out of the miserable 12 years I have been here, it seems that this is the only thing they have got right.
    As we all know how precarious the English system is with sales falling through, we have considered securing a property a head and would like to know:
    If we were to exchange and / or complete on the property in England which is to replace the Scottish one within the 30 days of completing in Scotland?

    Most of our equity is tied up in the Scottish house, but we would have a decent deposit to get further borrowing to buy the English one, which we hope will ultimately be a a small mortgage at worst. What would be the best way of doing this? Will we be hit with the tax, if so at what level and can we recover it?
    How do you prove that it is not a buy to let?

    Comment by cas649 — August 20, 2016 @ 8:33 am

  11. How does this work if one you are married do not have a property registered in you name, want to move out and buy your own home? Are you treated as a couple or two individuals?

    How does this work if selling in Scotland and buying in England? I know there are two separate land registry systems but one HMRC.

    Does George Osborn know that he has shafted the ordinary people or was this his final
    ‘up-yours’ on his way out?

    Comment by cas649 — August 20, 2016 @ 5:42 am

  12. If a couple buy a house together as their first family home but one of them already owns a buy to let property do they have to pay the extra stamp duty?

    Comment by Rita Stebbings — August 19, 2016 @ 5:24 pm

  13. Hi team,

    I am serving in the armed forces, currently living in Service Families Accommodation. I own my own house which I bought over 20 years ago and lived in for 2 years. I have since then, rented it out but kept it as a potential main residence, should such an occasion arise where I would need to leave the service swiftly. I am coming to the end of my time in the Army and as such am planning to buy a property to settle in. The purchase of this property may occur before the first property is sold, though this is the absolute intention. Will I be subject to the stamp duty surcharge or is there a timeframe to sell the first property to avoid this?

    Comment by Scott Marshall — July 31, 2016 @ 5:59 pm

  14. Hi all,

    If I have a house in another EU country and want to buy a new house in UK do I still pay the stamp duty?

    Comment by Angela — April 26, 2016 @ 10:13 am

  15. Hi Robert,

    If the home you are buying is replacing your main residence, then the additional 3% stamp duty will not apply.
    However, if you move out of your main residence but keep it and buy another main residence, you will have to pay the 3% stamp duty surcharge initially.

    If you sell the first home within 3 years of completing on the purchase of the new home, HMRC will make a full refund. But you need to pay the 3% surcharge upfront and on completion.

    For more information, please take a look at our Stamp Duty Surcharge Q&A article.

    Thanks,

    Annie
    HomeOwners Alliance Team

    Comment by Annie — March 29, 2016 @ 11:11 am

  16. i am buying anew build in august and will be selling my present house in september. will i be affected by the new tax rules?

    Comment by robert churches — March 29, 2016 @ 11:01 am

  17. I’m currently selling 2 homes in order to purchase 1. The first property is about to exchange but the second property isn’t going to complete before the 31st March. I’m buying my new place on the 7th April and even tho I’ve sold my property am I still going to be liable if it hasn’t completed?

    Comment by Matthew hicketts — March 17, 2016 @ 6:39 pm

  18. Yes, on BTL and second properties,the 3% (previously 0%) rate applies for the first £125000 from 1st April, then it’s 5% (previously 2%) for the next £125000 and so on up to 1.5M + where the new rate will be 15% (previously 12%).

    Comment by Andy — March 13, 2016 @ 11:29 pm

  19. buying a second home under 125.000 do I pay 3% stamp duty in april ?

    Comment by bev johnson — February 15, 2016 @ 9:48 pm

  20. I am buying a property price £350 paying 25% from my savings, I am truly hand to mouth as the seller re-negotiated 10% up at last minute because of overwhelmed response on his property or I think he couldnt get decent property onward. We do not want to miss this house the price now has already gone 5%+

    I have just exchanged contract, thank GOD! Now my solic required the rest of the funds in his bank account. But I can not pay stamp duty using my credit card, my solic says, he said by law he will inform my lender. I am not sure why can I not pay later (after completion) ?

    Comment by Sean — February 1, 2016 @ 10:17 pm

  21. i am selling my house for £900 could you tell me how much would the buyer have to pay in stamp duty as i believe the stamp duty is changing in April 2016.

    Comment by jennifer — December 7, 2015 @ 7:09 pm

  22. I own a property that I am renting out. I am the rental tenant in a different property and pay rent for it. If I purchase another property (my 2nd) to live in. Do I have to pay the new increased stamp duty rate?

    Comment by Ian — December 1, 2015 @ 9:22 pm

  23. I am buying a Buy to Let property for £485,000 which I’ve already exchanged on but it won’t complete until Q3 2016. Will I have to pay the extra 3% stamp duty announced in the Autumn statement?

    Comment by David Mills — November 30, 2015 @ 12:23 pm

  24. Can I pay the stamp duty with money from the mortgage or do I need to pay with money from deposit or savings?

    Comment by Laura Roman — November 12, 2015 @ 5:01 pm

  25. Good information regarding Stamp Duty. Thanks

    Comment by Ged Ward — November 12, 2015 @ 7:36 am

  26. Hello in am buy a flat by right to buy the flat was valued at £185,000 but with discounts buying it for £80,000 will i have to pay stamp duty

    Comment by Robert enoch — October 4, 2015 @ 6:41 pm

  27. The freeholder and owner of 2 flats out of 4 has a company yet he has sold the properties to himself. Basically he has bought, but bought both flats and freehold at the same time,, yet I have seen leases where he has bought flat from his own company being the MD of his property company, I feel this is done to avoid 15%stamp duty and pay only 5 %. Can you tell me if this is legal, a loophole that can be used. He has just sold 1 of the flats and it is a substantial amount of money he doesn’t pay by selling to himself. The lease has only initials and no signature or cost. If you can help me, many thanks..
    Matt

    Comment by Matt Gavin — August 23, 2015 @ 7:22 am

  28. so am i right in saying, that i do not have to pay the stamp duty immediately on completion, but within 30 after completion?

    Comment by jane — March 4, 2015 @ 5:15 pm

  29. I bought a property for 367500 in november and paid 11025.H.M Revenue are now asking me for another £75.00.Can you tell me why please

    Comment by j.purvis — January 28, 2015 @ 9:37 am

  30. Would I pay stamp duty on a buying a share of a property in a part ownership scheme if my share is under 125,000 but the overall value of the property was over?

    Comment by Olivia Rose Cunningham — January 27, 2015 @ 8:45 pm

  31. Is it legal to pay your buyer’s Stamp Duty? Our house has been valued at around £265k so at this price, if we offered to pay the almost £8k of our buyers stamp duty, we’d still get £258k.

    Comment by Karen — February 26, 2014 @ 7:50 am

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