Stamp Duty FAQs

What is stamp duty?

Stamp Duty Land Tax (SDLT) is a tax paid when you buy a property or land in England or Northern Ireland over a certain price. Scotland uses Land and Buildings Transaction Tax (LBTT) and Wales uses Land Transaction Tax (LTT). The rates and thresholds differ by country.

How much stamp duty do first-time buyers pay?

In England, first-time buyers pay 0% on the first £300,000 and 5% on the portion between £300,001 and £500,000. No first-time buyer relief applies to properties over £500,000. In Scotland, the 0% threshold is raised to £175,000 for first-time buyers. Wales does not currently offer a separate first-time buyer rate.

Do I pay stamp duty on a buy-to-let or second home?

Yes. In England and Northern Ireland, an additional 5% surcharge applies on top of standard SDLT rates for additional residential properties. In Scotland, a 6% Additional Dwelling Supplement (ADS) is charged on the full purchase price. In Wales, higher rates for additional dwellings replace the standard LTT rates entirely.

When do you pay stamp duty?

Stamp duty must be paid and returns submitted within 14 days of completing your property purchase. Your solicitor or conveyancer will usually handle this on your behalf.

Can stamp duty be added to my mortgage?

No, stamp duty cannot be added to your mortgage. It must be paid separately from your own funds at completion. This is an important consideration when budgeting for your purchase alongside your deposit and legal fees.

Is there stamp duty in Scotland?

Scotland has its own equivalent tax called Land and Buildings Transaction Tax (LBTT), which replaced SDLT for Scottish property transactions in 2015. The rates and thresholds are different from those in England and Northern Ireland.