If you’re looking at buying a home, you may have come across the term ‘Stamp Duty Land Tax’.
This is a self-assessed tax that you need to pay when purchasing a property. The rate that you pay depends on many factors such as the property price and whether you’re a first-time buyer.
In this article, Trainee Solicitor Bethany Pinner explains stamp duty in more detail and outlines what the current rates are.
How much is Stamp Duty Land Tax for previous homebuyers?
Previous homebuyers (aka non-first-time buyers) won’t pay any Stamp Duty Land Tax (SDLT) on the first £125,000 of the property price, but will pay 2% tax on anything between £125,001 and £250,000, and 5% on anything between £250,001 and £925,000.
You’ll pay 10% tax on any money between £925,001 and £1.5 million, and 12% on anything above £1.5 million.
How much is Stamp Duty Land Tax for first-time buyers?
First-time buyers can claim SDLT relief, meaning that they’ll pay no SDLT on the first £300,000 of the purchase price and only 5% on the portion from £300,001 to £500,000.
For example, if the property is worth £450,000 then you’ll only pay £7500 in SDLT; as opposed to the usual £12,500.
First time buyer relief does not apply to properties worth above £500,000, and the usual residential rates will apply.
We’ve put together a free 32-page guide for first-time buyers, which covers everything from mortgages and property loans to completing and moving in. You can read it here.
How much is Stamp Duty Land Tax on a second home?
SDLT will usually cost you an extra 5% on second homes on top of the usual residential rates.
However, additional SDLT can be refunded if the first property is sold within 36 months of purchasing the second property Further guidance on SDLT refunds can be found through the Government website.
Who does and doesn’t qualify to pay the extra 5% in SDLT can be complex, especially if two people are involved in buying the property.
For further guidance on the tax implications of second homes, you can read our dedicated article here. Or, if you want more tailored advice, you can get in touch with our Tax team here.
How much is Stamp Duty Land Tax for non-UK residents?
If you have not been in the UK for 6 months during the 12 months prior to your purchase, then a 2% surcharge will usually be added to the SDLT.
This 2% can be in addition to any other extra SDLT that has been applied, such as the added 5% for second homes.
How do you calculate Stamp Duty Land Tax on multiple properties?
Previously, if you were buying multiple properties at once, you may have been entitled Multiple Dwellings Relief. However, Multiple Dwellings Relief has now been abolished and does not apply to transactions that have completed on or after 1 June 2024.
Now, if you were to purchase 2 or more properties, as part of a single arrangement/scheme or multiple arrangements/schemes, from the same buyer or seller (or someone ‘connected’ to the same buyer or seller), these transactions may be considered ‘linked’.
If these transactions are considered ‘linked’, the impact of this is that the SDLT liability will be calculated on the total value of all the properties purchased combined. This can result in a higher rate of SDLT in comparison to what would be payable if you were to purchase a single property as a standalone transaction.
What happens if you don’t pay Stamp Duty Land Tax?
If SDLT is not paid within 14 days of the transaction, then interest may be charged on the tax amount owed. The interest will start after the 14 days have passed and end once the SDLT has been paid.
While the penalties for late filing can be appealed, the interest charged due to late payment cannot.
What are the penalties for late Stamp Duty Land Tax payments?
If a client is not represented by a firm, then they’ll need to send paperwork showing how much SDLT they owe. Penalties for late filing depend on how late the filings are made, and are as follows:
- £100 penalty – Up to 3 months late
- £200 penalty – More than 3 months late
In addition to the fixed penalties above, if SDLT is not paid within 12 months, a tax-based penalty may apply. This penalty can be up to the amount of SDLT that is due.
What are the penalties for inaccurate Stamp Duty Land Tax payments?
For any SDLT returns that are inaccurate and the HMRC deem it to be due to carelessness or deliberate behaviour then penalties may also be given.
When giving the penalty, HMRC take into account the seriousness of the offence and how helpful the party had been throughout the process.
It is therefore important that SDLT payments are on time and accurate, which your solicitor can help you with.
Will Stamp Duty Land Tax change in 2026?
SDLT has been subject to lot of change in recent years, particularly in early 2025. However, it is not currently anticipated that there will be any significant changes to SDLT in 2026.
Calculations for SDLT can be found here.
Conveyancing and Stamp Duty Solicitors
Our bright and experienced property team would be happy to assist you in the purchase of your home and in dealing with stamp duty, please feel free to direct any questions our way.
To get in touch, call us on 01202 499255 or fill out the form at the top of this page. We offer a free initial chat for all new clients.
If you’re not ready to chat to us, and want to learn more, you can read our complete guide to purchasing a home here.
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