The tax you pay for property or land is different across the UK. Use the tabs to view the information tailored for each country.   

What is Stamp Duty?

Stamp Duty—or Stamp Duty Land Tax (SDLT) in official terms—is charged to buyers when purchasing a residential property or a piece of land that costs over £250,000. This tax applies to both freehold and leasehold properties, whether you’re buying outright or with a mortgage.

Stamp Duty Holiday
From 1 July to 30 September, buyers can still benefit from not paying SDLT on properties that cost up to £250,000 across England and Northern Ireland. The latest phase of the Stamp Duty Holiday also sees the special rules and rates for first-time buyers return, including first-time buyers purchasing property through a shared ownership scheme.

How much is Stamp Duty?

Stamp Duty is calculated based on the value of the home. This table explains how the rate you pay varies depending on the price of the property until 30 September 2021

Purchase price Main residence Additional homes
£0 – £250,000 0% 3%
£250,001 – £925,000 5% 8%
£925,001 – £1.5m 10% 13%
£1.5m+ 12% 15%

 

MAKING SENSE OF THE PRICE BRACKETS
If you buy a property for £400,000 as your main residence, the Stamp Duty would be 0% on the first £250,000 and 5% on the remaining £150,000 (£5,000) so in total you would pay £5,000.

Paying Stamp Duty

You must file an SDLT return and pay the tax within 14 days of taking possession of your new property. In most cases your solicitor or conveyancer will help you but if not, you will need to contact HMRC directly to make payment.

If you fail to make payment within 30 days, HMRC may charge you a penalty fee and/or interest. They accept several different payment methods including online, at your bank or building society or you can pay by cheque.

Additional rate refunds

If you purchase a new home but there’s a delay in selling your previous residence, you will still be liable to pay higher Stamp Duty rates for additional properties as effectively you’ll own two properties. However, you can request a refund for the amount above the normal Stamp Duty rates if:

  • you sell your previous main residence within three years
  • you claim the refund within three months of the sale of your previous main residence, or within 12 months of the filing date of your self-assessment tax return (whichever comes later)

Apply for a repayment of the higher rates of Stamp Duty Land Tax.

Are there any exemptions?
You may be eligible for tax relief in certain situations, which can reduce the amount you pay. For example, Stamp Duty Land Tax does not apply if you have been left a property in a will or received it as a gift, however other taxes might apply such as inheritance tax. You will also be exempt if the property has been transferred to you following a divorce, separation or the end of a civil partnership. Visit the gov.uk website for the full list of reliefs and exemptions.

Land and Building Transaction Tax (LBTT)

The "LBTT holiday" came to an end in Scotland on 31st March, meaning the zero tax threshold has dropped from £250,000 back to £145,000. First time buyers will benefit from a nil tax threshold of £175,000, as they did prior to the 15th July 2020.

Property cost Main residence Additional homes
£0 – £145,000 0% 4%
£145,001 – £250,000 2% 6%
£250,001 – £325,000 5% 9%
£325,001 – £750,000 10% 14%
£750,000+ 12% 16%

 

Paying Land and Building Transaction Tax

Your solicitor will usually make the arrangements for your LBTT to be paid. However, if they don’t, land tax returns can be submitted using Revenue Scotland's online portal or manually by completing a paper form and paying by cheque. Revenue Scotland does not accept payment over the phone or by cash. If you fail to make payment within 30 days of taking possession of your new property, you will be charged a penalty fee. Full details of how to make a payment can be found on the Revenue Scotland website.

Additional rate refunds

In instances where the Additional Dwelling Supplement (ADS) has been paid prior to your previous residence being sold, to qualify for a refund you must:

  • have bought a dwelling which you intended to inhabit as your main residence
  • dispose of your previous main residence within an 18-month period (beginning with the day after the effective date of the next main residence purchase transaction)
  • have been the only owner on the title deeds of the previous main residence

You can claim repayment for ADS via the SETS portal, by amending your original LBTT return, or by completing a repayment claim form.

Are there any exemptions?
There are several types of land transactions which are specifically exempt from LBTT or that offer tax relief. If a piece of land or a building has been gifted, or the ownership transferred to you (e.g. in a will) you will not have to pay land tax. You will also be exempt if the property has been transferred to you as a result of divorce, separation or the end of a civil partnership. Visit the Revenue Scotland website for the full list of LBTT exempt transactions.

Land Transaction Tax (LTT)

From April 2018, Land Transaction Tax (LTT) replaced UK Stamp Duty in Wales and is the levy all buyers must pay when purchasing a property over £180,000. LTT is calculated on a percentage basis depending on whether or not the property is your main residence. This table sets out the tax percentage you will pay for each price band.

Property cost Main residence Additional homes
£0 – £180,000 0% 3%
£180,001 – £250,000 0% 6.5%
£250,001 – £400,000 5% 8%
£400,001 – £750,000 7.5% 10.5%
£750,000 – £1.5m 10% 13%
£1.5m+ 12% 15%

 

Buy-to-let and additional properties

Buyers purchasing an additional residential property costing more than £40,000 will incur a 3% surcharge. For example, if you buy a second home for £300,000 you will pay 3% on the first £180,000, 6.5% on the next £70,000 and 8% on the final £50,000. The total LTT fee will amount to £13,950.

JOINT OWNERSHIP
If you already own a home and decide to jointly buy an additional property with a partner or a friend before selling your main residence, you are likely to be liable to pay the higher rate of tax. However, you may be able to claim a repayment if the relevant conditions are met.

Paying Land Transaction Tax (LTT)

Your solicitor should be registered with the Welsh Revenue Authority (who are responsible for collecting LTT) and will be able to make the transfer on your behalf as part of the conveyancing process.

Additional rate refunds

If you make your second home your main residence within 36 months of buying it (you sell the first property), you will be able to claim back the higher rates you paid. This can be done by contacting the Welsh Revenue Authority and providing them with:

  • the Unique Transaction Reference Number (UTRN)
  • the taxpayer's name and address
  • the reason for a refund/amendment
  • a description of any amendments to the return
  • whether the amendment alters the amount of tax due
  • the effective date of the amendment/repayment claim
  • the amount to be repaid
  • the name of the account holder
  • your bank/building society account number and sort code
  • the name and address of your bank or building society

You will also need to include a declaration to confirm that you have the authority (or have been authorised to complete this amendment on behalf of the buyer) and declare that the information provided is to the best of your knowledge correct and complete.

Are there any exemptions?
There are five transactions which are exempt from LTT, these include acquisitions by the Crown, transactions in connection with a divorce or dissolution of a civil partnership and where a property has been gifted. Visit the Welsh Government's website for the full list of LTT exempt transactions.


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