What is Stamp Duty

20 March 2024

 

Stamp Duty, also known as Stamp Duty Land Tax (SDLT) in England and Northern Ireland, is a tax levied when you purchase property or land. The amount you pay depends on various factors, including the property price, and whether it is your primary residence or an additional property.

Stamp Duty rates are set by the government from time to time and your SDLT payment can be very significant.

Currently, no stamp duty is due on the first £250,000 of a residential property (provided it is your main residence and not a second home). However, if you are a first-time buyer, the threshold is £425,000, up to a property value of £625,000.

You should also be aware that if you are a couple buying together and only one of you is a first time buyer, then unfortunately you will not be able to apply first time buyer relief as all owners must be first time buyers.

There are many different factors which can affect the stamp duty payable, such as whether you have ever owned property anywhere in the world, not just the UK, whether you own a second property and even your job in certain circumstances. The rules surrounding SDLT are very complex and you may be required to get advice from an accountant.

Remember, the SDLT rates can change, so always verify the latest information before making any property transactions. If you are planning to buy a property, you should use the official HMRC Stamp Duty calculator to determine the exact amount you will need to pay.

Should you require any advice and assistance with any conveyancing matter, our Property Law Partner Ruth Flinn can be contacted via email on rflinn@fhanna.co.uk or by calling 028 9024 3901