Stamp Duty Guide

Stamp Duty Guide

Discover All You Need to Know About Stamp Duty Here

England

Understanding Stamp Duty:

Stamp Duty Land Tax (SDLT) is a tax levied on property and land purchases. The amount varies based on the property price, its type (residential or non-residential), and the buyer's status, such as First Time Buyer.

Here's How it Works:

  • Properties valued between £125,001 and £250,000 incur a 2% stamp duty rate. For instance, on a £250,000 property, the stamp duty tax would be £2,500.

  • For the next £675,000, the rate is 5%. For example, on a property valued between £250,001 and £925,000, the buyer pays 2% on the next £125,000 and 5% on the remaining £675,000.

First-Time Buyer Benefits:

  • In England and Northern Ireland, first-time buyers are entitled to stamp duty relief on properties valued up to £500,000. No tax is paid on the first £300,000.

  • In Wales, first-time buyers are exempt from land transaction tax on the first £180,000 of their home's value.

  • In Scotland, first-time buyers are exempt from land and buildings transaction tax on the first £175,000 of the property's sale price.

Scotland

Understanding Land and Buildings Transaction Tax (LBTT)

The Land and Buildings Transaction Tax (LBTT) is a tax levied on property and land purchases in Scotland. Administered by Revenue Scotland in collaboration with Registers of Scotland, LBTT replaced the Stamp Duty Land Tax in Scotland on April 1, 2015. Much like Stamp Duty, the tax amount is determined by factors such as the property's price, whether it's residential or non-residential, and the buyer's status as a First Time Buyer or purchasing an additional dwelling.

Wales

What is Land Transaction Tax?

The Land Transaction Tax is levied upon property or land purchases in Wales, collected by the Welsh Revenue Authority. Similar to England's Stamp Duty, the tax amount varies based on property price, type (residential or non-residential), and buyer status (first-time or additional dwelling).