UK Stamp Duty Rates

Taxes are usually the most significant amount payable when buying a property in the UK, usually with a mortgage loan. Stamp duty is also payable on stock and share transfers. However, many myths surround these duties, so this site has the latest information.

The government sets stamp duty rates with HM Revenue and Customs (HMRC) collecting the tax on completion of a property transaction. The current percentages range from 0% (up to £500,000) to 12% for values over £1.5 million.

New: Calculate your stamp duty tax

Current Rates of Stamp Duty (from 1st October 2021)

Below are the current rates of Stamp Duty for property purchases in England and Wales. Please note:

  • First-time buyers get 100% relief (discount) on purchases up to £500,000
  • Second-home purchases attract a 3% premium for valuations over £40,000

Rates From 1st October 2021

All temporary discounts ended on 30th September 2021 and the rates are back to pre-pandemic levels. First-time buyers pay no tax on homes costing up to £500,000. Second-home owners continue to pay 3% on values above £40,000.

Property Price SDLT Rate
Up to £125,000 0%
Over £125,000 and under £250,000 2%
Over £250,000 and under £925,000 5%
Over £925,000 and under £1,500,000 10%
Over £1,500,000 12%

Source: HMRC

Different rates apply in Scotland.

The above rates are applicable throughout 2021 until further notice.

Stamp Duty Rates is an impartial service for residential property buyers looking to find their tax liability. Founded in 2010, we help over 10,000 people each week locate accurate information.

2015 - 2021 Rates

The Chancellor of the Exchequer announced a radical change in the rates and structure during his 2014 Autumn statement.

Now the tax is only payable on the portion of the value in the bracket, and came into effect from Midnight 3rd December 2014.

For example; for a house sold for £300,000 the stamp duty payable is now £5,000 - (0% of £125,000 (£0) plus 2% of £125,000 (£2,500) plus 5% of £50,000 (£2,500) equals £5,000). Under the old system, the tax would have been £9,000, a substantial saving. (This calculation is outside of the current holiday rates).

See how much stamp duty you'll now pay in the UK

Types of Stamp Duty

These rates are fixed and payable upon completion of a property purchase, with your solicitor deducting the appropriate amount on your final account for conveyancing services. So what will you pay?

There are several types of charges payable on land-based transactions, although most people are in Stamp Duty Land Tax payable on residential property sales.

  • Stamp Duty Land Tax (SDLT) for residential property.
  • SDLT for disadvantaged areas.
  • SDLT on new residential leasehold purchases.
  • SDLT on non-residential or mixed-use properties.
  • Stamp Duty on the sale of shares.

Stamp Duty Land Tax for Residential Properties

This tax is what most people will pay when they buy another property. The purchaser generally pays this tax via their solicitor, although some sellers will pay this tax for you as part of a sale agreement.

The percentage you pay depends on the sale price of your property and is currently only payable on a sale value above £125,000 (holiday in effect equals 0% up to £500,000) - the current rates are as follows:

Buy-To-Let Properties

Higher duties come into force from 1st April 2016 for buy-to-let properties and second homes. Click here for more information.

Latest News and Stamp Duty Changes

30th September 2021

All temporary discounts ceased and rates are back to pre-pandemic levels.

3rd March 2021

The £500,000 stamp duty holiday extends until 30th June 2021. Additionally, you pay no tax for transactions up to £250,000 until 30th September 2021. The nil rate band falls back to £125,000 on 1st October 2021.

8th July 2020

A new stamp duty holiday begins, so the nil rate band ends at £500,000 until 31st March 2021 (extended to 31stJuly 2021).

22nd November 2017

Stamp duty scrapped for first-time buyers on properties up to a value of £500,000 for the first £300,000. You pay no tax up to £300,000, then 5% for the portion between £300,001 and £500,000. If you're a first-time buyer and the property exceeds £500,000, then the standard rates apply on the entire price.

25th November 2015

New Buy-To-Let rates introduced.

27th April 2015

The Labour leader, Ed Miliband announced today that first-time buyers would pay no Stamp Duty on purchases up to £300,000. This Stamp Duty holiday would take effect under a Labour government and last three years.

Ed stated the £225m funding of this election incentive comes from a 2% increase in Duty for overseas investors and reducing tax avoidance from landlords.

1st April 2015

The Scottish Parliament announced a new system to replace Stamp Duty named Land and Buildings Transaction Tax. Check the new rates for Scotland and calculate any tax due.

3rd December 2014

New reforms of charging were introduced in the Chancellor's Autumn statement with higher bands for more expensive properties.

Notes:

Find more details about the history of stamp duty rates by the Chancellors over the years.

Be aware that the stamp duty rate shown previously is payable on all the amount and is not split according to the percentages. So if you had a sale price of £260,000 then your payment rate is 3% of all of the £260,000.

Lower Rates for commercial property used by the business community still apply.

Your solicitor normally pays the tax on completion of your purchase. You'll incur a financial penalty if you don't pay on time and payment must be made within 30 days of legal completion.

SDLT for Disadvantaged Areas

The rates for disadvantaged areas of the UK are exactly the same as the above except the 1% rate starts at £150,000 rather than the standard £125,000

About Stamp Duty

Purchasing a house or shares has incurred the tax for many decades now.

The initial rate of 1% was drastically increased many times under the labour government from 1997 through to 2010 to a top rate of 7%.

The Conservative party made substantial reforms in late 2014 to increase the top rate even further to 12%. However, 98% of home sales will see a reduction in their overall tax bill from these changes.

Your solicitor usually calculates the amount due during your home move. The total amount makes up your final invoice, deducted from any proceeds, and automatically transferred over the HMRC on your behalf.

In legal terms, HM Revenue and Customs calculate what is termed "the consideration". Usually the consideration is simply the total purchase price, but could include other aspects of a sale.