If you’re buying a home in England or Northern Ireland, there’s a good chance you’ve heard of Stamp Duty Land Tax (SDLT). But what exactly is it, and more importantly can you save on it? Let’s break it down…
Stamp Duty is basically a tax when you buy a property over a certain value. It’s calculated based on the purchase price of the property – and how much you pay depends on how much your new home costs.
Let’s Talk Money
First of all, if you’re buying your property for less than £125,000 then you will not be required to pay SDLT.
Here’s a quick look at how much stamp duty you’ll pay on a single property if you’re a UK resident:
| Property value | Stamp Duty Rate |
| £125,001 – £250,000 | 2% |
| £250,001 – £925,000 | 5% |
| £925,001 – £1.5 million | 10% |
| Above £1.5 million | 12% |
Exemptions – First Time Buyers
There are certain circumstances where you will be exempt from paying SDLT, like if you’re a first time buyer, you are eligible for stamp duty relief on properties costing up to £300,000.
However, if the house you are buying is over £300,000 then you will pay 5% stamp duty tax on the portion from £300,001 to £500,000. Properties exceeding £500,000 for first-time buyers will be taxed at the standard stamp duty rates as the discount will no longer apply.
Quick note: If you’re buying a home with someone else, you both need to be first time buyers to benefit from this.
Exemptions – Inheritance
If you inherit a property through a will, you won’t have to pay stamp duty. Although you may need to pay other fees (depending on the circumstances) such as inheritance tax.
If you were to inherit more than 50% of a property, then go on to buy a second house you may be required to pay higher stamp duty rates on the new property.
Stamp Duty for Non UK Residents
If you are a non UK resident purchasing a property in England or Northern Ireland, you will have to pay a 2% surcharge on top of the standard rates. So it is worth factoring this into your budget if you’re buying from overseas.
Why a Conveyancing Solicitor is a Lifesaver
A conveyancing solicitor will file all the SDLT paperwork for you on completion day. They will also manage things like:
- Property searches (e.g local authority, environmental)
- Transferring of funds
- Contract reviews
- Ensuring you meet all legal obligations
They help keep your move smooth, safe and free from potential complications further down the line.
No Conveyancing Solicitor Yet?
Don’t worry! Click here to get free, no-obligation conveyancing quotes in under 20 seconds. Let us help you save time and money while ensuring your move is legally sound.
🔑 Pro Tip: Always check the latest rates and thresholds for SDLT, as they can change. A conveyancing solicitor can provide up-to-date advice!
