How much tax will you have to pay when buying a property in the UK?
Updated reduced rates of Stamp Duty Land Tax (SDLT) for residential properties purchased from 8 July 2020 until 31 March 2021 inclusive.
FAQ
What is Stamp Duty?
SDLT otherwise known as ‘Stamp Duty Land Tax’ is a tax you pay when you buy a property or land in the UK.
How do I pay Stamp Duty?
Payment of Stamp Duty is through your property solicitor. Typically your Solicitor will assist you with Stamp Duty payments.
How is Stamp Duty calculated?
Property prices are grouped into different brackets and taxes accordingly – very similar to how income tax is calculated.
Up until March 2021, the band brackets below.
Main Home Residence
| Band | First time buyers/standard residential |
| Up to £500,000 | 0% |
| £500,001 and up to £925,000 | 5% |
| £925,001 and up to £1.5 million | 10% |
| Above £1.5 million | 12% |
Second home
There is a 3% additional rate on top of the % above for all second properties. .
| Band | Second home |
| Up to £500,000 | 3% |
| £500,001 and up to £925,000 | 5% |
| £925,001 and up to £1.5 million | 13% |
| Above £1.5 million | 15% |
Correct as of July 2020
More on Stamp Duty
How Much is Stamp Duty in the UK on a House
When you buy a home, you don’t just pay for the property itself. There are a number of costs that […]
Buying a Second Home? Here’s What You Need to Know
Buying a home can be a long and arduous process, but it is worth it to end up in possession […]
