What is Stamp Duty?
Stamp Duty Land Tax (SDLT) is a mandatory tax charged by the government when you buy a new home in England. The rate you pay will be dependant on the value of the property, and whether you're a first time buyer or buying your next or additional property.
What is Stamp Duty called in Scotland and Wales?
In Scotland it is known as Land and Buildings Transaction Tax (LBTT), and in Wales it is called Land Transaction Tax (LTT).
What are the thresholds for Stamp Duty on residential properties?
The current thresholds are:
- England: £125,000
- Scotland: £145,000
- Wales: £225,000
This means you will pay no Stamp Duty if the property costs less than these thresholds.
Do first time buyers have to pay Stamp Duty?
In England, first time buyers purchasing a property up to the value of £300,000 do not have to pay Stamp Duty. If a property costs more than this, they'll pay 5% Stamp Duty on the portion from £300,001 to £500,000. If the price is over £500,000, first time buyers cannot claim the relief and will need to follow the rules for people who’ve bought a home before.
In Scotland the threshold for first time buyers is £175,000.
What are the current Stamp Duty rates?
The current rates in England, are:
- Up to £125,000: 0%
- The next £125,000 (the portion from £125,001 to £250,000): 2%
- The next £675,000 (the portion from £250,001 to £925,000): 5%
- The next £575,000 (the portion from £925,001 to £1.5 million): 10%
- The remaining amount (the portion above £1.5 million): 12%
The current rates in Scotland, are:
- Up to £145,000: 0%
- £145,001 to £250,000: 2%
- £250,001 to £325,000: 5%
- £325,001 to £750,000: 10%
- Over £750,000: 12%
The current rates in Wales, are:
- The portion up to and including £225,000: 0%
- The portion over £225,000 up to and including £400,000: 6%
- The portion over £400,000 up to and including £750,000: 7.5%
- The portion over £750,000 up to and including £1,500,000: 10%
- The portion over £1,500,000: 12%
What happens if you don’t pay Stamp Duty?
You will not be able to purchase your new home if you do not pay Stamp Duty. It is required to legally change the ownership of land. Your solicitor will calculate your Stamp Duty and usually charge it within your conveyancing fee.
Rates correct as of 12th May 2025.
Article overview
Stamp Duty Land Tax (SDLT) is a government tax in England on property purchases, with rates based on price and buyer status. It’s called LBTT in Scotland and LTT in Wales. Thresholds are £125,000 (England), £145,000 (Scotland), and £225,000 (Wales); below these, no tax is due. First-time buyers in England pay no tax on homes up to £300,000. SDLT rates rise progressively, reaching 12% for high-value properties. Similar tiered rates apply in Scotland and Wales. Stamp Duty must be paid to complete a home purchase, and solicitors typically handle it during conveyancing. Rates are accurate as of 12 May 2025.
Article overview composed with the help of AI
Disclaimer
newhomesforsale.co.uk is an information platform and not a financial advisor, mortgage broker or mortgage lender. Always get financial advice before making significant decisions about your money, mortgages and buying a house.
Publish date 5th May, 2025
Reading time: 4 minutes
Written by newhomesforsale.co.uk
