Category: Buyer, First Time Buyer, Sale & Purchase, Seller
Anyone in the market for a new home will want to know early on what their final bill for Stamp Duty Land Tax (SDLT) will be.
Stamp duty is paid to HMRC based on the value of property or land. There are exemptions for first-time buyers and the duty itself is paid on a sliding scale.
Tax most buyers will pay
There has been lots of discussion in the media in the last couple of years on SDLT, and regular calls for reform of the system, but in general, most buyers will have to fork out for the tax when their purchase transaction is complete.
Let's take a look at what SDLT is, what it costs and how it's collected.
Remember that Scotland and Wales have their own distinct and separate stamp duty systems. In Scotland, it's called the Land and Buildings Transaction Tax (LBTT), and in Wales, it's the Land Transaction Tax (LTT). You can read more here about how LTT operates in Wales.
Essential guide to stamp duty
Stamp Duty Land Tax is paid on a sliding scale. Any land or property valued at less than £125,000 is exempt from the tax when sold.
However, the buyer or their conveyancing solicitor is still obliged to complete a declaration form to be submitted to HMRC within 14 days of the purchase being completed.
Landlords buying a property to let it out and those buying an additional property pay a surcharge, introduced in 2016.
You can work out how much you are due to pay based on the purchase price by using the HMRC SDLT calculator.
Here are the rates for SDLT in 2019:
| Property/land purchase price | Stamp Duty Land Tax | Buy to let/Extra home rate* |
| to £125,000 | 0% | 3% |
| £125,001 to £250,000 | 2% | 5% |
| £250,001 to £925,000 | 5% | 8% |
| £925,001 to £1.5 million | 10% | 13% |
| £1,500,001 and above | 12% | 15% |
*Surcharge for buyers purchasing an additional property and buy-to-let landlords
And here are the SDLT rates for first-time buyers in England in 2019:
| Property/land purchase price | Stamp Duty Land Tax |
| to £300,000 | 0% |
| £300,001 to £925,000 | 5% |
| £925,001 to £1.5 million | 10% |
| £1.5 million and above | 12% |
14-day deadline for payment
When your purchase transaction is complete, your conveyancing solicitor will complete an SDLT return on your behalf and submit it to HMRC within 14 days.
You can also complete the return yourself, but most property lawyers will offer this service as part of the conveyancing services they provide.
Stamp duty experts
All the conveyancing solicitors who work with Homeward Legal are experts in dealing with stamp duty and can give you all the information you require on your purchase.
First-time buyers will be talked through their initial property purchase by an experienced conveyancing solicitor to ensure they know exactly what's involved.
Our friendly team here at Homeward Legal will provide you with all the detail you need on SDLT and its impact on your overall conveyancing costs.
Talk to us now on or get a no-obligation quote online for your sale or purchase conveyancing.