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Stamp Duty

Stamp Duty, also known as Stamp Duty Land Tax (SDLT), is a charge that applies when purchasing a residential property in the UK.

The initial phase of the Government's Stamp Duty Holiday has now come to a close, but the scheme does have a tapered ending instead of a complete return to normal thresholds.

This Stamp Duty holiday applies to both first-time buyers and existing homeowners.

The threshold for which you start paying Stamp Duty is set to change on several key dates this year:

  • From 1st July to 30th Sept: You'll pay no Stamp Duty on the first £250,000 (up to £300,000 for first-time buyers) of a main residence.
  • From 1 Oct: Stamp Duty thresholds will return to their usual levels, starting from £125,000 (or £300,000 for first-time buyers).

You must complete your home purchase before the 30th September to make use of the discounts available.

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Temporary Stamp Duty rates from 8 July 2020 until 31 March 2021
Purchase Price Rate on main residence Rate for additional properties
Up to £250,000 (up to £300,000 for first-time buyers) 0% 3%
£250,001 - £925,000 5% 8%
£925,001 - £1,500,000 10% 13%
£1,500,001+ 12% 15%

If you are purchasing a buy-to-let property or a second home (that is not a replacement for your main residence) that costs more than £40,000, you will still pay the additional 3% Stamp Duty surcharge.

The charge applies regardless of whether the property is new or second hand, and the amount you pay depends on the purchase price. Stamp Duty also applies to both freehold and leasehold properties and whether you are using a mortgage or buying with cash.

Stamp Duty in Wales

In Wales, Stamp Duty is referred to as the Land Transaction Tax (LTT) and applies to home purchases of more than £180,000. You can see a full breakdown of how Land Transaction Tax is charged in Wales on the Government website here.

Stamp Duty in Scotland

In Scotland, Stamp Duty is referred to as the Land and Buildings Transaction Tax (LBTT) and is charged when you buy a home of more than £145,000, or £175,000 if you are a first-time buyer. You can see a full breakdown of how Land and Buildings Transaction Tax is charged on the Government website here.