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What is Stamp Duty Land Tax?

You must pay Stamp Duty Land Tax (SDLT) if you buy a property or land over a certain price in England and Northern Ireland.

You pay the tax when you:

  • Buy a freehold property
  • Buy a new or existing leasehold
  • Buy a property through a shared ownership scheme
  • Are transferred land or property in exchange for payment, for example you take on a mortgage or buy a share in a house

First Time Buyers

If you are a first-time buyer in England or Northern Ireland, you will pay no Stamp Duty on properties worth up to £300,000.

For properties costing up to £500,000, you will pay no Stamp Duty on the first £300,000. However, you will have to pay Stamp Duty at the relevant rate of 5% on the remaining amount, up to £200,000.

If the property being bought is worth more than £500,000, the standard rates of Stamp Duty will apply and need to be paid which will then cancel out the first-time buyer’s relief.

How much Stamp Duty will I pay?

Below is a detailed image of what stamp duty percentage buyers have to pay based on the purchase price of their house or land. To find out specifically what stamp duty needs paid, please see the attached link provided by the Government to their Stamp Duty Calculator.


How and when do I pay Stamp Duty?

Stamp duty land tax is something that clients are usually concerned about. They are often unsure when or how to pay it. The law requires that an SDLT return must be submitted to HM Revenue and Customs (HMRC) with any tax due within 30 days of the “effective date” of the transaction. This is usually, but not always, the date of legal completion. Sometimes it can be sooner. If the return is submitted late there are penalties starting at £100.

You still must submit a return even if you are not due to pay any stamp duty on the purchase price of your property unless the property costs less than £40,000.

At TLS we make sure that clients are kept updated and ensure that any deadlines are communicated effectively and in advance.  Whilst it may seem daunting, it is our duty to simplify this process for you and advise on your potential savings.

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