Stamp Duty

WHAT IS STAMP DUTY?

Stamp Duty Land Tax (SDLT) is the tax charged by the government, which you pay on completion of the purchase of your new home. The amount you pay is determined by the purchase price of your new home and whether after purchasing, it is the only home you own.

HOW STAMP DUTY WORKS

Stamp Duty is calculated similarly to income tax. Rather than paying a fixed percentage on the total sale price of the property, the percentage of Stamp Duty is applied only to the portion of the property price in specific brackets.

STAMP DUTY THRESHOLDS

The government introduced a Stamp Duty holiday in 2022, which is due to end in March 2025. Moving home before then could save you thousands. For example;

Existing homeowners purchasing a new home prior to 31^st March 2025, at an example purchase price of £500,000 will pay £12,500 Stamp Duty. For the same home, purchased from 1^st April 2025, you will pay £15,000 Stamp Duty.

STAMP DUTY FOR FIRST TIME BUYERS

If you legally complete on your new home before 31^st March 2025, and you are a first-time buyer purchasing a property up to the value of £425,000, you are not required to pay any Stamp Duty. First-time buyers purchasing a property valued between £425,001 and £625,000 can also still benefit, as you won’t pay Stamp Duty on the first £425,000. However, if you are purchasing a property over £625,000, you should follow the standard Stamp Duty rules applicable to existing homeowners.

From 1^st April, the thresholds reduce so if you are a first-time buyer purchasing a property up to the value of £300,000 you are not required to pay any Stamp Duty. First-time buyers will pay 5% Stamp Duty on the portion of your purchase price from £300,001 to £500,000.

Start your search for your new home today to take advantage of the lower Stamp Duty thresholds.

The below calculator shows the cost of Stamp Duty for the reduced thresholds, available on purchases completed prior to 31^st March 2025.