When you buy a property in the UK, you have to pay a certain amount of stamp duty. This is calculated rather like income tax, whereby you pay the rate of tax on the part of the purchase price within each stamp duty tax band.
The tax is paid to the government within 14 days of completion of the sale via an SDLT return to HMRC. If you have a solicitor, estate agent or conveyancer, they’ll usually file your return and pay the tax on your behalf on the day of completion and add the amount to their fees. They’ll also claim any relief you’re eligible for, such as if you’re a first-time buyer. You can also file the return and pay the tax yourself if you wish to do so.
The cost of stamp duty varies depending on the price of your chosen property and your reason for buying it. You can use our calculator to work out the stamp duty on your chosen property.
Following on from the Stamp Duty holiday, from 1st October 2021 tax will be payable for any property over the value of £125,000.