What is Stamp Duty?
Read on to learn more about Stamp Duty, how and when it’s paid and how much it is for first and second-time buyers.
How much is Stamp Duty?
How much you pay for Stamp Duty depends on the property’s purchase price. Find the rates below:
| Minimum property purchase price | Maximum property purchase price | Stamp Duty % |
| £0 |
£250,000 (£425,000 for first-time buyers) |
0% |
| £250,001 |
£925,000 |
5% |
| £925,001 |
£1,500,000 |
10% |
| £1,500,000+ |
12% |
Why do I need to pay Stamp Duty?
Some exceptions include:
• If a portion of a home is transferred to a spouse or partner following a divorce or separation
• If you gift your house to someone else
When do I need to pay Stamp Duty
How do I pay Stamp Duty?
Stamp Duty for first-time buyers
If you’re a first-time buyer in England or Northern Ireland, you won’t need to pay Stamp Duty on properties worth up to £425,000. Here are the rates:
| Purchase price | Stamp Duty % |
| Up to £425,000 |
0% |
| £425,001-£625,000 |
5% |
Stamp Duty for investors
Stamp Duty on a second home or a buy-to-let costs an additional 3% on top of the standard rate. This also applies to those buying the main home abroad while owning a second one in the UK.
The rates are as follows:
| Purchase price | Stamp Duty % |
| Up to £250,000 |
3% |
| £250,001-£925,000 |
8% |
| £925,001-£1,500,000 |
13% |
| £1,500,001+ |
15% |
You won’t need to pay the additional 3% if your property is:
• A caravan
• A mobile home
• A houseboat
Browse our brand-new homes across the UK to find your new property. Our homes are energy-efficient and modern, offering flexible living space and contemporary features.
Call our Sales Advisers today to find out what offers you may be eligible for.
Buying in Scotland and Wales
See more detail on LBTT (Scotland)
(Terms and conditions apply)
Stamp Duty in Wales is referred to as the Land Transaction Tax (LTT) and is charged when you buy a home of more than £180,000.
Stamp Duty FAQs
-
Yes, stamp duty is payable on a new build property, just like any other property purchase.
-
It depends on the lender, but some may allow you to add stamp duty to your mortgage, although this will increase your overall mortgage payments and interest charges.
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Stamp duty is not applicable to properties priced below £250,000, and first-time buyers are exempted from paying this tax on properties priced below £425,000. There are also other circumstances where you may be exempt.
-
As of September 2022, the current stamp duty rates in for residential property purchases are:
- Up to £250,000: 0%
- £250,001 to £925,000: 5%
- £925,001 to £1.5 million: 10%
- Above £1.5 million: 12%
First-time buyers are exempt from paying stamp duty on properties up to £425,000 and pay a reduced rate on properties up to £625,000.
^Figure based on a first time buyer purchasing a property worth £543,500.
