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Stamp Duty Explained

Confused about how much Stamp Duty you have to pay when buying a property? Unsure whether or not you qualify for Stamp Duty Relief? Maybe you’re wondering if this is something you can manage yourself or if it is best left to a solicitor? Stamp Duty can be a bit mind-boggling, especially for first-time buyers. Don’t worry though, we here at Home Estate Agents are on-hand to give you all the information you need about Stamp Duty so you can be sure everything is in order for the purchase of your property.

What is Stamp Duty?

Stamp Duty is a type of Land Tax that you have to pay if you are buying a residential property in England or Ireland that costs more than £125,000. Stamp Duty applies to both freehold and leasehold properties and must be paid whether you are buying outright or with a mortgage.

The amount you have to pay in Stamp Duty might change depending on things like the price of the property you are buying, whether or not you’re a first-time buyer, and if the property you are buying is a second home.

How Much Stamp Duty Will I Have to Pay?

Stamp Duty costs are calculated depending on the price of the property you are buying. These prices are split into “bands”. The good news is that you don’t have to pay Stamp Duty on the first £125,000 of a property (unless you are buying a second home).

To find out how much Stamp Duty you will pay on a property simply consult this handy chart:

Property Price

Stamp Duty Rate Band£0 – £125,0000%£125,001 – £250,0002%£250,001 – £925,0005%£925,001 – £1.5 million10%Over £1.5 million12%

How and When Do I Pay Stamp Duty?

You can pay Stamp Duty yourself or pay a solicitor to do it for you. You must submit your Stamp Duty return and pay the full amount within 30 days from the purchase of your property. Even if your property costs less £125,000, and you don’t need to pay any Stamp Duty, you must still submit a return. If you don’t submit a Stamp Duty return, you might find yourself on the receiving end of a penalty fee and you may even have to pay interest on top of that!

Stamp Duty and Additional Properties

If you already own a residential property and wish to purchase another residential property, like second home or a buy-to-let property, you will have to pay an extra 3% Stamp Duty Land Tax on top of the current rate for the price band. You will also have to start paying Stamp Duty at a much lower property price than you would on your first home (£40,000 or more)!

Stamp Duty and First-Time Buyers

First-time buyers are eligible for something called Stamp Duty Relief which means you will not be charged Stamp Duty on the first £300,000 of your property!

If the property you are buying costs under to £500,000 you will pay no stamp duty on the first £300,000 but will have to pay Stamp Duty on the remaining amount up to £200,000. If the property you are buying is worth MORE than £500,000 you will not be eligible for first-time buyer’s relief.

If you are searching for more information about the property services we offer when it comes to buying property, contact us here.


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