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Published on : February 21, 2018 16:15

How Much Stamp Duty Will I Pay?


Stamp Duty Land Tax is a fee that must be paid when you purchase a property above a certain value (currently £125,001 or more). The amounts can be quite significant and you will have to factor this into your budget when considering how much deposit you need to buy a house. Use this guide to find out about how Stamp Duty works, including Stamp Duty for first time buyers, rates for second homes and how it is paid.

How much is Stamp Duty?

There are several rate bands for Stamp Duty.

The tax is calculated on the part of the property purchase price that falls within each band.

For example, if you buy a house for £275,000, the Stamp Duty Land Tax (SDLT) you owe is calculated as follows:

  • 0% on the first £125,000 = £0
  • 2% on the next £125,000 = £2,500
  • 5% on the final £25,000 = £1,250

Stamp Duty for first time buyers

If you’re a first-time-buyer in England, Wales or Northern Ireland, you will pay no Stamp Duty on properties worth up to £300,000. This means if you are a first-time-buyer, you will save up to £5,000.

For properties costing up to £500,000, you will pay no Stamp Duty on the first £300,000. You will pay Stamp Duty on the remaining amount, up to £200,000.


How to pay Stamp Duty

Usually, your solicitor will deal with the Stamp Duty return and any payment due for you, although you can do it yourself.

Either way, you’re responsible for making sure it’s all submitted on time.

If the price of your new home is under £125,000, you must still submit a return (unless exempt) even though you won’t need to pay any Stamp Duty.