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Stamp Duty

Stamp duty is a tax which must be paid on property purchases which exceed certain monetary values. The more expensive the property, the greater the percentage of the price which must be paid in stamp duty.

Stamp duty land tax is the government tax paid on property and land purchases with a value of over £125,000. It gets its name from the official stamp which was required to make the legal documents involved in property transfer valid.

There were previously many other types of stamp duty which existed in the UK, taking their names similarly from the official stamps given to legal documents. However, most of these were scrapped in 2003 and the stamp duty paid on property transfers was renamed as Stamp Duty Land Tax (SDLT) by the Finance Act 2003. The modern day SDLT is not technically a stamp duty, as the official stamp is no longer required.

The amount of stamp duty is decided on a sliding scale of differing thresholds. Please see the tables below to determine how much tax would be payable on your future home. The amount payable will be a percentage of the price paid for the property. As well as the price of the property, the amount of Stamp Duty Land Tax payable will depend on whether or not the property is intended for residential use.

The administration of the stamp duty land tax is normally taken care of by whomever is carrying out the conveyancing for your move – usually a solicitor or licensed conveyancer.

Current stamp duty rates

Stamp duty land tax on residential land or property - freehold or leasehold

With stamp duty, you pay a set percentage, which increases at certain thresholds, on each portion of the property price. You don't pay a specific percentage on the entire purchase.

For example, if you bought a house for £130,000, putting you over the zero-rated threshold of £125,000, you wouldn't pay 2% of the full price in stamp duty - you would only pay it on the amount over the initial threshold, which in this case is only £5,000.

Another example might be if you purchased a property for £300,000. You'd pay no stamp duty on the first £125,000, then 2% of the next £125,000, and finally 5% of the remaining £50,000.

Below are the current stamp duty rates.

Portion of purchase price
Stamp Duty Land Tax rate

First £125,000


Next £125,000


Next £675,000


Next £575,000


Anything beyond that


Large expensive properties purchased by corporations

Stamp Duty Land Tax is usually charged at 15% on residential properties valued over £500,000 that are acquired by companies or collective investment schemes. However, if the property is to be used for the purpose of property rental, property development or resale, or visitor admission on a commercial basis, the rates in the table above will apply.

Residential leases

If you have a residential lease with a value greater than £125,000, you will have to pay 1% Stamp Duty Land Tax on any amount above £125,000.

Properties for non-residential or mixed use

Purchase price/lease premium or transfer value Stamp Duty Land Tax rate

Up to £150,000 with annual rent lower than £1,000


Up to £150,000 with annual rent higher than £1,000


Over £150,000 up to £250,000


Over £250,000 up to £500,000


Over £500,000


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