Stamp Duty Rates

England and Northern Ireland

Stamp Duty Holiday 2020

As of 8th July 2020 the Chancellor announced a Stamp Duty exemption for all properties in England and Northern Ireland up to the value of £500,000 up until the end of March 2021. For second homes or Buy to Let properties, there will be a discount, where only 3% Stamp Duty is payable up to the first £500,000. Above that amount, the usual percentage applies.

Similarly, in Scotland the threshold for paying Land & Buildings Transaction Tax was raised from £145,000 to £250,000 on Wednesday 15 July. The rates and thresholds above this figure remain unchanged. The higher threshold will remain in place until 31 March 2021.

Please note: The average house move in England takes 20 weeks (11 weeks in Scotland), so you may miss out on the exemption if you are starting the buying process now. The calculator reflects what you pay if you miss the deadline of 31 March 2021.

The rates for Stamp Duty Land Tax (SDLT) have been updated and adapted over the years. They apply to those buying properties in England and Northern Ireland, and work on a band system in order to work out how much tax you pay on your home purchase. The more expensive your property, the more you will pay in Stamp Duty, but as it is done through bands, you will only pay a percentage for the portion of the property in that band.

Purchase price bands (£) Percentage rate (%)
Up to £500,0000%
£500,000 to £925,0005%
£925,001 to £1,500,000 10%
Above £1,500,000 12%

So if you bought a property worth £550,000 it would cover the first 2 tax bands.

On the first £500,000 you would pay 0%
On the final £50,000 you would pay 5% = £2,500

This means your total Stamp Duty payment would be £2,500.

Find out how much Stamp Duty you’ll have to pay with our quick and easy Stamp Duty calculator.

Paying a higher rate of Stamp Duty

You will pay a higher rate of Stamp Duty if your property is more expensive. For example, in England and Northern Ireland, anything over £1.5 million has a 12% Stamp Duty rate. However, remember that the portions up to that amount still go through the lower bands and are worked out that way.

You will never pay Stamp Duty on the first £125,000 (first £500,000 until 31 March 2021) of your property.

There are other instances in which you might have a higher Stamp Duty tax bill.

Second Home and Buy to Let Stamp Duty Rates

If you are buying a second home or are buying a property to let out as a landlord, you will pay a higher rate of Stamp Duty.

If you are buying a new property before selling your old property, you will briefly be owner of two homes and pay the second home rate of Stamp Duty.However, as long as you sell your initial home within 3 years you can reclaim it.You just need to make sure you fill in the paperwork to reclaim the difference in Stamp Duty within 3 months of selling the property.

Welsh Rates

The rates for Land Transaction Tax(LTT) are slightly different to those for Stamp Duty, and they have a higher starting price for bands, to remain in line with the average house price in Wales.

You can instantly find out how much Land Transaction Tax you’ll have to pay by using our LTT calculator .

Scottish Rates

The Scottish equivalent of Stamp Duty is known as Land and Buildings Transaction Tax(LBTT). There is nothing to pay on properties up to £250,000 (reverting to £145,000 on 1 April 2021).

Purchase price bands (£) Percentage rate (%)
Up to £250,000 0%
£250,001 to £325,000 5%
£325,001 to £750,000 10%
Above £750,000 12%

Find out how much you should expect to pay for Land and Buildings Transactions Tax with our quick and easy LBTT calculator.

How do you pay and when it is it paid?

Stamp Duty is usually paid through your conveyancing solicitor or licensed conveyancer. They may take this payment alongside your other payments, or they may take it separately. Stamp Duty must be paid within 14 days of completion on your property.