What is stamp duty?
You can find the latest updates below, or jump directly to our FAQs on stamp duty.
September stamp duty tax cut is now a temporary holiday
On 17th October 2022, the Government announced that September’s stamp duty tax cut is now a temporary holiday, meaning that homebuyers across England have until 31st March 2025 to take advantage of the current reduction.
Under the holiday, prospective buyers do not have to pay stamp duty unless the value of the home exceeds £250,000. For first-time buyers, the threshold is even higher, allowing up to £425,000 in property value before stamp duty tax is applied. For further information, refer to the information on this page or the gov.uk website.
What does the end of Help to Buy mean for me?
Applications for the Government’s Help to Buy scheme are no longer being accepted (in England) as of Monday 31st October 2022. Buyers who have already reserved a home using the scheme have until Friday 31st March 2023 to complete their purchase.
If you have already bought your home using Help to Buy and would like further information about the scheme, please refer to our Help to Buy page, or visit the gov.uk website.
What does the stamp duty tax cut mean for me?
On 23rd September 2022, the government announced a cut on stamp duty tax for homebuyers across England and Northern Ireland. The announcement raises the threshold of how much a home costs before stamp duty is paid to £250,000.
Additionally, first-time buyers will not have to pay stamp duty on the first £425,000 – up from the previous £300,000 threshold.
What does the end of the stamp duty holiday mean for me?
On 31st September 2021, the government’s stamp duty holiday ended, with stamp duty thresholds returning to original levels. Those moving into a new home in England must pay stamp duty on homes with a purchase price above £125,000.
However, for first-time buyers, there is no stamp duty on the first £300,000 of a home, provided the property’s purchase price is £500,000 or less.
Read our stamp duty guide, located further down the page, to find out more.
What does the end of the Land Transaction Tax (LTT) holiday mean for me?
On 30th June 2021, the temporary LTT holiday in Wales ended. As a result, those purchasing a new home in Wales must pay LTT if the property’s price exceeds £180,000. There is no extra relief on LTT for first-time buyers.
For first-time buyers, the threshold is higher – no LBBT is paid unless the property is priced above £175,000.
For more information, read our LTT guide.
What does the end of the Land and Buildings Transaction Tax (LBTT) holiday mean for me?
The temporary LBTT holiday, introduced in Scotland during the pandemic, ended on 31st March 2021. Consequently, those moving into a new home in Scotland must pay LBTT on properties with a purchase price over £145,000.
For first-time buyers, the threshold is higher – no LBBT is paid unless the property is priced above £175,000.
For more information, read our LBTT guide.
What does the stamp duty holiday extension mean for me?
The Chancellor of the Exchequer, Rishi Sunak, has announced in his most recent Budget that there will be a three month extension to the stamp duty holiday in England. The stamp duty holiday, that was previously due to end on 31st March 2021, will now run until 30th June 2021. This could save homebuyers up to £15,000 on homes up to the value of £500,000, if you complete on your new home on or before the deadline.
After this date, the starting rate of stamp duty will still be double its normal rate, at £250,000, until the end of September. From 1st October, stamp duty will then return to the usual level of £125,000.
As a result of the stamp duty holiday extension, homebuyers now have an additional three months to complete a property purchase while still benefiting from the holiday. Homebuyers can also continue to take advantage of both Help to Buy and Bellway’s Express Mover scheme (where applicable), while the stamp duty holiday is in place.
The stamp duty holiday extension is only applicable to home purchases in England. Any review of the rules for house purchases in Scotland and Wales will be a matter for each of the devolved Governments in those countries.
If you have further questions regarding the stamp duty holiday or would like to enquire about finding your new Bellway home, our friendly sales team would love to hear from you.
What do the changes to Stamp Duty Land Tax mean for me?
The Chancellor of the Exchequer, Rishi Sunak, has announced in his Summer statement a Stamp Duty Land Tax (SDLT) payment holiday is which will be effective from the Autumn. The measure has been introduced in response to the economic impact COVID-19 has had on the UK, and it is hoped the move will stimulate the housing market which has been hit heavily by the impact of the virus.
What has changed?
The Chancellor has announced that the Stamp Duty threshold has been increased to £500,000 for the next six months – so if you are buying a property below that threshold, you will no longer have to pay any Stamp Duty tax.
The move means a saving of thousands of pounds for home buyers. For example, anyone purchasing a property with an asking price of £300,000 under the current rules would pay SDLT of £5,000. This is broken down by £0 for the first £125,000, £2,500 or 2% for the next band of £125,000-£250,000, and a further £2,500 at 5% over £250,000. First-time buyers wouldn’t pay SDLT on a purchase at this price.
From the Autumn, home buyers will pay nothing on a £300,000 purchase. The Chancellor is hoping that this move will stimulate anyone thinking of buying a new home into making that purchase, spurred on by the saving on offer.
The change is only applicable to home purchases in England. Any review of the rules for Scotland and Wales house purchases will be a matter for each of the devolved Governments in those countries.
What do the changes to Land and Buildings Transaction Tax mean for me?
The Scottish government has announced a temporary rise in the threshold at which Land and Buildings Transaction Tax (LBTT) becomes payable by home buyers in Scotland. This ‘stamp duty’ holiday is great news for anybody planning on buying a home in Scotland – not just for those purchasing their first property – and could mean savings of thousands of pounds.
There is now no tax to pay on first homes costing less than £250,000. The measure came into effect on 15th July 2020 and will run until 31st March 2021.
What do the changes to Land Transaction Tax mean for me?
The Welsh government has announced a temporary rise in the threshold at which Land Transaction Tax (LTT) becomes payable by home buyers in Wales. From 27th July 2020, this ‘stamp duty’ holiday could save all purchasers – not just first-time buyers – thousands of pounds. It means no tax is payable on residential properties costing up to £250,000 and will last until 31st March 2020.
What is stamp duty?
Stamp Duty Land Tax (SDLT) is a fixed sum of money paid to the government upon purchase of property or land. In England and Northern Ireland, residential properties worth more than £250,000 require stamp duty to be paid upon purchase of the home (there is no stamp duty payable on homes priced less than this). For first-time buyers this limit is increased to £425,000.
How much tax is due depends on the property price.
In Wales the tax is known as the land transaction tax (LTT) and in Scotland as the land and buildings transaction tax (LBTT).
When is stamp duty payable?
A stamp duty land tax return must be filed and the tax paid – usually by your solicitor – within 14 days of completion on your new home. If you fail to meet this deadline you may be charged interest and penalties. If no stamp duty is due, you will still need to complete a return, unless the purchase price of the property is less than £40,000.
How much will I have to pay?
First-time buyers
When buying your first home you will not pay stamp duty on property costing up to £425,000 in England and Northern Ireland, or £175,000 in Scotland. If the price is above this, the amount you pay will depend on where you live. There is no first-time buyer relief in Wales.
In England and Northern Ireland you will pay 5% stamp duty, on anything up to £625,000. Property costing more than £625,000 does not attract first-time buyer relief at all, so you will pay the tax due
In Scotland you will pay stamp duty on property costing more than £175,000, according to that country’s standard rates.
If you are buying a home with somebody else then this has to be a first home for both of you, in order for you to be considered first-time buyers.
Stamp duty example calculations for first-time buyers
First-time buyer buying a property under £300,000
Property value at point of purchase: £300,000
0% stamp duty to pay
First-time buyer buying a new property over £425,000
Property value at point of purchase: £500,000
0% stamp duty to pay up to £425,000
5% stamp duty to pay from £425,000 to £500,000 = £3,750
Total stamp duty payable = £3,750
Home movers
If you are buying a new home to live in, and you have owned a home before, you will pay stamp duty on any property costing more than £125,000. If you are buying a home with someone else and it is not your first home, you will be eligible to pay stamp duty even if they are a first-time buyer.
Stamp duty example calculations for home movers
Current homeowner buying a property under £250,000
Property value at point of purchase: £250,000
0% stamp duty to pay up to £250,000
Total stamp duty to pay = £0
Current homeowner buying a property over £250,000
Property value at point of purchase: £295,000
0% stamp duty to pay up to £250,000 of the value
5% stamp duty to pay from £250,000 to £295,000 = £2,250
Total stamp duty to pay = £2,250
What are the standard rates for SDLT?
In England and Northern Ireland
| Minimum purchase price |
Maximum purchase price |
Stamp Duty rate |
|---|---|---|
| £0 | £250,000 | 0% |
| £251,001 | £925,000 | 5% |
| £925,001 | £1.5 million | 10% |
| Over £1.5 million | 12% |
In Wales
| Minimum purchase price |
Maximum purchase price |
Stamp Duty rate |
|---|---|---|
| £0 | £180,000 | 0% |
| £180,001 | £250,000 | 3.5% |
| £250,001 | £400,000 | 5% |
| £400,001 | £750,000 | 7.5% |
| £750,001 | £1.5m | 10% |
| Over £1.5m | 12% |
In Scotland
| Minimum purchase price |
Maximum purchase price |
Stamp Duty rate |
|---|---|---|
| £0 | £145,000 | 0% |
| £145,001 | £250,000 | 2% |
| £250,001 | £325,000 | 5% |
| £325,001 | £750,000 | 10% |
| £750,001 + | 12% |
Rates on second properties
If you are buying a second home, or a buy-to-let property, then you will not pay stamp duty on the first £40,000. For everything above that amount you will pay an extra 3% above standard rates, so for England and Northern Ireland:
In England and Northern Ireland
| Minimum purchase price |
Maximum purchase price |
Standard stamp duty rate |
With additional property stamp duty rate |
|---|---|---|---|
| £0 | £250,000 | 0% | 3% |
| £250,001 | £925,000 | 5% | 8% |
| £925,001 | £1.5m | 10% | 13% |
| £1.5m+ | 12% | 15% |
FAQs (England)
The threshold for first-time buyers has now been raised, meaning you will only have stamp duty payments to make if the home you’re purchasing is worth over £425,000.
The tax is due on all properties costing over £250,000, whether they are freehold or leasehold. There may be an extra charge on leasehold properties; your solicitor may be able to advise you if this applies to you.
Homes valued at £250,001 will have the standard rate stamp duty applied, which will be 5%.
The Government stamp duty calculator is a useful tool for determining how much stamp duty you will have to pay: https://www.tax.service.gov.uk/calculate-stamp-duty-land-tax
Yes, you will be liable for a higher rate stamp duty on your new home as it is in effect a second residential property. However, if you subsequently sell your first home then you can apply for a refund of the higher rate portion of the duty paid.
The time limits for this are three years in England.
FAQs (Scotland)
Yes first-time buyer relief still exists, however, the new £250,000 threshold is greater than the firsttime buyer relief limit of £175,000. This means that until 31 March 2021 first-time buyer relief has no practical effect.
No. Second homes will still attract an Additional Dwelling Supplement (ADS) levy, which remains unchanged.
This depends on the value of the property you are buying, but until 31st March 2021 the standard bands are 5% for homes costing £250,001 - £325,000, 10% for homes costing £325,001 - £750,000 and 12% for homes costing over £750,000.
Yes, any home costing more than £40,000 requires you to submit an LBTT return to Revenue Scotland and this does not change as a result of the new nil-rate band.
FAQs (Wales)
The change applies to all home buyers. There is no specific first-time buyer relief in Wales.
No. Second homes and buy-to-let properties will continue to be subject to an additional levy of 3% above standard LTT rates.
This depends on the value of the property you are buying, but until 31st March 2021 the standard bands are 0% for homes costing up to £250,000, 5% for homes costing £250,001 - £400,000, 7.5% for homes costing £400,001 - £750,000, 10% for homes costing £750,001 - £1.5m and 12% for homes costing over £1.5m
Yes, any home costing more than £40,000 requires you to submit an LTT return to the Welsh Revenue Authority and this does not change as a result of the new nil-rate band.
