Stamp Duty Land Tax
What is Stamp Duty?
Stamp Duty Land Tax (SDLT) is a government tax that applies when you buy a home over a certain value in England and Northern Ireland.
It’s something to be aware of when budgeting for your move—especially if you’re a first-time buyer, as there are discounts that could help reduce your costs.
What do I need to know?
The amount of Stamp Duty you might pay depends on:
- The price of the property you’re buying
- Whether or not you’re a first-time buyer
Stamp Duty works in bands. That means you only pay the higher rate on the part of the property price that falls into a higher band. The more expensive the home, the more Stamp Duty you'll pay.
First-time buyers
If you (and anyone else you’re buying with) are purchasing your very first home, you may be eligible for a Stamp Duty discount. This applies if the property you’re buying is £625,000 or less.
| Property price | SDLT rate |
|---|---|
| Up to £425,000 | 0% |
| £425,001 to £625,000 | 5% |
| Over £625,000 | Standard rates apply |
Example
If you're a first-time buyer purchasing a home for £500,000:
- You won’t pay anything on the first £425,000
- You’ll pay 5% on the remaining £75,000 (£3,750)
- Total SDLT: £3,750
Not a first-time buyer?
If you’ve owned a property before (in the UK or abroad), you won’t qualify for the first-time buyer discount. Instead, you’ll pay the standard Stamp Duty rates:
| Property price | SDLT rate |
|---|---|
| Up to £250,000 | 0% |
| £250,001 to £925,000 | 5% |
| £925,001 to £1.5 million | 10% |
Example
Buying a home for £500,000 and not a first-time buyer?
- You won’t pay anything on the first £250,000
- You’ll pay 5% on the remaining £250,000 (£12,500)
- Total SDLT: £12,500
Find out more on the government website: gov.uk/stamp-duty-land-tax
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