Stamp Duty is a tax payable on purchasing property or land in the United Kingdom. The property buyer pays a one-time tax, and the amount owed is based on the property’s purchase price.

The Stamp Duty rate depends on the property’s value and whether it is purchased as a principal residence or a second home/investment property. In England and Northern Ireland, the rates for residential properties are:

Up to £125,000: 0%
£125,001 to £250,000: 2%
£250,001 to £925,000: 5%
£925,001 to £1.5 million: 10%
Above £1.5 million: 12%
In Wales, the rates are slightly different and start at 0% for properties valued up to £180,000.
A 3% surcharge is added to the standard rates for second homes or investment properties.
Stamp Duty is usually paid by the buyer’s solicitor on completion of the sale. It must be paid within 14 days of the purchase completion date. Interest and penalties may be applied if the Stamp Duty is unpaid within the required timeframe.

DISCLAIMER: This article was written to exemplify stamp duty liability when buying a home in England, Wales or Northern Ireland. The information above should be used as a guide. Calculations are based on information about the current market and are subject to change. If specific advice is required concerning any of the matters covered in this article, please get in touch with us for further information.

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The information contained within was correct at the time of publication but is subject to change.