Stamp Duty Made Simple

Khizar Siddique
Aug 2, 2022
3 min read

Updated: Aug 17, 2022

Stamp Duty Land Tax or SDLT is a tax levied upon the purchase of a property and is made payable to HM Revenue & Customs. The amount varies per transaction and is influenced by the property location, price and whether you own other properties. Stamp duty is payable 14 days following completion, your solicitor will usually deal with this unless you instruct them otherwise.

How much is stamp duty in England & Northern Ireland?

Stamp duty rates in England and Northern Ireland from October 1st, 2021

PURCHASE PRICE OF PROPERTY	STAMP DUTY RATE	STAMP DUTY RATE FOR ADDITIONAL PROPERTIES
Up to £125,000	0%	3%
£125,001 to £250,000	2%	5%
£250,001 to £925,000	5%	8%
£925,001 to £1.5 million	10%	13%
Over £1.5 million	12%	15%

How much is stamp duty in Scotland?

SDLT in Scotland is known as Land and Buildings Transaction Tax’ (LBTT). First-time buyer relief in Scotland is £175,000. From 1st April, 2021 LBTT rates:

PURCHASE PRICE OF PROPERTY	STAMP DUTY RATE	STAMP DUTY RATE FOR ADDITIONAL PROPERTIES
Up to £145,000	0%	4%
£145,001 to £250,000	2%	6%
£250,001 to £325,000	10%	14%
Over £750,000	12%	16%

How much is stamp duty in Wales?

In Wales stamp duty is called Land Transaction Tax (LTT). There is no first-time buyer relief in Wales. LTT rates:

PURCHASE PRICE OF PROPERTY	STAMP DUTY RATE	STAMP DUTY RATE FOR ADDITIONAL PROPERTIES
Up to £180,000	0%	4%
£180,001 up to £250,000	3.5%	7.5%
£250,001 to £400,000	5%	9%
£400,001 to £750,000	7.5%	11.5%
£750,001 to £1.5m	10%	14%
Over £1.5m	12%	16%

Do I qualify for first-time buyer stamp duty relief?

The SDLT rate for first time buyers will vary, a relief is given for the initial £300,000 in the UK and a relief of £175,000 in Scotland. Unfortunately, Wales does not provide any relief.

Please see stamp duty for first time buyers for more information.

Stamp duty on additional properties

SDLT is payable by anyone who owns additional properties but at an enhanced rate.

Stamp duty rates and leasehold homes.

In the majority of instances, you will pay stamp duty on the purchase price of a leasehold home at the standard rates.

Does stamp duty apply to fixtures and fittings?

SDLT is not applicable to the contents of the property but it is to the properties fixtures and fittings. This extends to items which are affixed to the property, examples include ovens and kitchen units.

Your SDLT bill can be reduced by subtracting the value of removable fixtures and fittings from the property price. However, it is important to note that a realistic price must be agreed to reflect the true value of the item to avoid issues with HMRC.

Are there any other exemptions?

Besides first time buyers relief, there is a wide range of other exemptions available.

Properties worth less than £40,000 are exempt from stamp duty
Homes registered to companies rather than individuals with a value exceeding £500,000 have a SDLT rate of 15%.
Charities may be eligible for SDLT relief buying land and property for charitable purposes.
Right-to-Buy transactions may qualify for discounts
Registered social landlords may be able to get relief if they are buying land or property.
Zero-carbon homes below £500,000 are exempt. Any properties over £500,000 are reduced by £15,000.
A full list of SDLT exemptions and reliefs are listed on the HMRC website.

Can I use stamp duty for my mortgage?

Money from your mortgage can be used to cover your SDLT bill. It is important to calculate accordingly how much money you will need for the property and any additional expenses which also includes SDLT. It is important to note any additional borrowing will be liable to the same conditions of your mortgage. This why we recommend the highest deposit you can part with as it will significantly lower your loan-to-value and also decrease monthlies.

Are there any other exemptions to stamp duty?