What is Stamp Duty?

If you’re a first time buyer, you could get a discount on Stamp Duty, depending on where in the UK you are buying. In England and Northern Ireland you won’t need to pay any Stamp Duty if the house you’re buying costs £250,000 or less.

If you’re a first time buyer in Scotland you wont need to pay any stamp duty if the property or land you’re buying costs £175,000 or less. In Wales, you wont need to pay Stamp Duty on a property costing up to £225,000. 

See our first time buyer mortgages

If you're buying an additional property, including rental properties, second homes and holiday homes, you'll have to pay additional Stamp Duty. The amount you pay depends how the purchase price and location of the property. 

• If you’re buying a second home in England or Northern Ireland you’ll pay an extra 3% tax on top of the usual rates.
• When you buy a second home in Wales you’ll need to pay an extra 4% of the total value of the property.
• In Scotland, you will need to pay an Additional Dwelling Supplement, which is an extra 6% on top of the standard rate. This was raised from 4% in December 2022.

In England and Northern Ireland the Stamp Duty threshold as of 23rd September 2022 is £250,000. In Scotland it is £145,000. In Wales it is £225,000.

This means that you won’t need to pay any tax if the property you buy costs less than this, and if it’s the only property you will own. If you’re purchasing a property that costs more than this you will need to pay the Stamp Duty. 

There are certain circumstances in which Stamp Duty is either not payable or can be reduced. Examples of these situations include:

• When the property price is only just within a higher band, the seller or estate agent may accept a slightly lower price.
• If you’re divorcing or separating from your spouse or partner, there’s no Stamp Duty to pay if you transfer a proportion of your home’s value to them. 
• If you transfer the deeds of your home to someone else – either as a gift or in your will – they won’t have to pay Stamp Duty on the market value of the property.

From 1 April 2021, if you’re a non-UK resident buying a residential property in England or Northern Ireland,  an additional 2% will be payable on top of the existing Stamp Duty rates for properties which cost more than £40,000.

The surcharge does not apply to purchases of land or buildings in Scotland or Wales.