What is stamp duty?

Stamp duty land tax is a tax you must pay if you buy a property over a certain value in England and Northern Ireland.

Buyers in Scotland pay Land and Buildings Transactions Tax, and buyers in Wales pay Land Transaction Tax.

You can check the following government websites for further details.

• England and Northern Ireland – Stamp Duty Land Tax
• Scotland – Land and Buildings Transactions Tax
• Wales – Land Transaction Tax

You pay this tax when you:

• Buy a freehold property
• Buy a leasehold for a property
• Buy a property through a shared ownership scheme
• Are transferred land or property in exchange for payment. Examples of this would be; buying a share of a property, taking on a mortgage or entering into a Home Purchase Plan agreement

Stamp duty thresholds for buying property in England and Northern Ireland

The current stamp duty threshold for residential properties is £500,000. Nonresidential land and properties have a stamp duty threshold of £150,000.

If you buy a property under this price do not have to pay stamp duty.

Stamp duty threshold for property purchases from 1 April 2021 will return to:

• £125,000 for residential properties
• £300,000 for first time buyers
• £150,000 for non-residential land and properties

Land and Buildings Transaction Tax threshold for buying property in Scotland

In Scotland, the rates on Land and Buildings Transaction Tax are:

• 2% on £145,001-£250,000
• 5% on £250,001-£325,000
• 10% on £325,001-£750,000
• 12% on any value above £750,000
• Scottish landlords pay an extra 4% Land and Buildings Transaction Tax on top of standard rates.

Land Transaction Tax thresholds for buying property in Wales:

• 3.5% on £180,001-£250,000
• 5% on £250,001-£400,000
• 7.5% on £400,001-£750,000
• 10% on £750,001-£1.5m, and 12% on any value above £1.5m
• Welsh landlords pay an extra 3% Land Transaction Tax on top of standard rates.