Stamp Duty Explained

Stamp Duty is a tax you might have to pay when buying a property or a piece of land.
You will pay Stamp Duty on residential properties in England and Northern Ireland costing more than £250,000, unless you are a first-time buyer
This tax applies to both freehold and leasehold properties. It also applies whether you’re buying outright or with a mortgage.

- If you’re buying a property in Scotland, you’ll pay Land and Buildings Transaction Tax instead of Stamp Duty.
- If you’re buying a property in Wales, you’ll pay Land Transaction Tax instead of Stamp Duty.

Stamp Duty on second homes

If you’re buying an additional property such as a second home, you’ll have to pay an additional rate 5% in Stamp Duty on top of the standard rates. You won’t pay any Stamp Duty if the property costs less than £40,000. It doesn’t apply to caravans, mobile homes or houseboats.

You are a first-time buyer if:

- You’re purchasing your only or main residence, and
- You've never owned a freehold or have a leasehold interest in a residential property in the UK or abroad.
- If you’ve ever inherited a property (or part of one), you won’t be considered a first-time buyer.

How long do you have to pay Stamp Duty?

You have 14 days to submit a Stamp Duty Land Tax (SDLT) return and pay any SDLT due. If you don’t submit a return and pay the tax within 14 days, HMRC might charge you penalties and interest.

Refund of higher rates of Stamp Duty

If you buy a new main residence but there’s a delay in selling your previous home, you might have to pay the higher rates of Stamp Duty as you’ll now own two properties. However, if you sell your previous home within three years of buying your new home you can apply for a Stamp Duty refund. This will let you claim back the extra tax you paid on your new home. You can request a refund for the amount above the usual Stamp Duty rates if:

- You sell your previous home within three years, and
- You claim the refund within 12 months of the sale, or within 12 months of the filing date of your Stamp Duty return, whichever comes later.

You can apply for a Stamp Duty refund on GOV.UK