What is stamp duty?

Stamp duty is the tax charged by the Government when you buy a home of more than £125,000. 

Why do I need to pay it?

When you buy a property the change in land ownership has to be legally registered at the Land Registry. This process requires a certificate from the HMRC – which they will only issue on receipt of the stamp duty due on the purchase of the property.

 

The transfer of funds to pay the stamp duty will be managed for you by your solicitor.

For homes over £125,000 there will be no stamp duty to pay on the first £125,000, then the following rates will apply:

Purchase Price

Stamp Duty %

£0 to £125,000

0% (Zero)

£125,001 to £250,000

2%

£250,001 to £925,000

5%

£925,001 to £1,500,000

10%

Over £1,500,000 12%

What if I'm a first time buyer?

The Holden family living room

If you're a first time buyer, purchasing a home up to £500,000, the following rates will apply:

Purchase Price

Stamp Duty %

£0 to £300,000

0% (Zero)

£300,001 to £500,000

5%

Note: For properties priced over £500,000, no additional first time buyer relief will be available.

What if I'm an investor or own more than one company?

If you are buying an investment property or an additional home, the following rates will apply:

Purchase Price

Stamp Duty %

£0 to £125,000

5%

£125,001 to £250,000

7%

£250,001 to £925,000

10%

£925,001 to £1,500,000

15%

Over £1,500,000

17%


Guide to homebuying

Buying in Scotland and Wales

Stamp duty in Scotland is referred to as the Land and Buildings Transaction Tax (LBTT) and is charged when you buy a home of more than £145,000.

See more detail on LBTT (Scotland)

Stamp duty in Wales is referred to as the Land Transaction Tax (LTT) and is charged when you buy a home of more than £225,000.

See more detail on LTT (Wales)

David Wilson Homes Study - Avondale

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.

Our offers to help get you moving

Help to Sell Schemes

We have a range of schemes to help you sell your existing home.

Parent Power

Parents can also help. Typically they (or a close family member) could help you with your deposit, or guarantee your mortgage, or act as a joint applicant.

Low Deposit Schemes

If you have a low deposit, we have a variety of schemes to help make moving more affordable.

Key Worker Scheme

We could help make your move with our Key Worker Deposit Contribution Scheme.

Own New - Rate Reducer

Own New - Rate Reducer is a scheme available on new build homes that could mean lower mortgage rates and reduced monthly payments.

Part Exchange

We could be your guaranteed buyer. No stress or fuss, just an easy move for you and your family.