Stamp duty explained

schedule 2 min read

Stamp duty is a tax most people will need to pay within 14 days of buying their home. You should work out the amount of stamp duty before buying your home so you can budget for the costs.

Working out how much stamp duty you'll pay

Stamp duty is worked out on a sliding scale and depends on whether you are a first time buyer or not. You’ll need to pay a percentage of your property price. The rate will depend on the part of the property price that falls within each band.

Stamp Duty rates for first time buyers

If you’re a first time buyer (if you’ve never owned a property before, whether that’s in the UK or anywhere else in the world), you’re eligible for the reduced rates shown below:

If you’re buying a house with anyone else, you and the other people you’re buying with must all be first time buyers, and the property price can’t be above £500,000.

For example, if you buy a property for £350,000, the stamp duty would be:

• 0% on the first £300,000
• 5% on the final £50,000

This means you would pay £2,500 in stamp duty.

Stamp Duty rates if you’re not a first time buyer

For example, if you buy a property for £350,000, the stamp duty you owe will be calculated as follows:

• 0% on the first £125,000 = £0
• 2% on the next £125,000 = £2,500
• 5% on the final £100,000 = £5,000

Total stamp duty = £7,500