What is Stamp Duty?

If you’re considering buying a new home, you need to know about Stamp Duty. The Stamp Duty Land Tax (SDLT) is paid to the Government when you buy a property or piece of land over a specific price in England and Northern Ireland.

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%

Stamp Duty has changed and could save you thousands

Why do I need to pay Stamp Duty?

You must pay Stamp Duty if you’re buying a house or land in England or Northern Ireland. The tax also applies to leasehold and shared ownership properties and purchases that don’t require a mortgage.

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

You need to file a Stamp Duty Land Tax return and pay the full amount within 14 days of buying your new home.

How do I pay Stamp Duty?

Your solicitor will sort out the Stamp Duty return and payment for you. However, you can do it yourself by submitting the tax return online.

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

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) 
(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.

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.
  • 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.

Showing developments closest to {{ query.term }}

Help to Sell Schemes

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

 

Low Deposit Schemes

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

 

Part Exchange

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

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 brand-new scheme available on new build homes that could mean lower mortgage rates and reduced monthly payments.

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.

 

^Figure based on a first time buyer purchasing a property worth £543,500.