When buying a property in the UK over a certain price, stamp duty is payable.

Since 1st March 2019 UK Stamp Duty (SDLT) must be paid to HMRC within 14 days of completion, or the purchaser may be subject to a penalty.

There is a fixed penalty of £100 for returns filed up to three months late, increasing to £200 for returns which are filed more than three months late.

What is UK Stamp Duty?

Stamp Duty Land Tax (SDLT) is a progressive tax paid when purchasing a freehold, leasehold or shared ownership residential property over £125,000 in England, Northern Ireland and Wales, there is a separate Land and Buildings Transaction Tax in Scotland. 

Different rules apply if you're buying your first home and the purchase price is £500,000 or less.

Who Pays Stamp Duty?

SDLT is paid by everyone purchasing a residential or non-residential property in England, Northern Ireland and Wales, including overseas buyers, corporate bodies and non-natural persons.

What Rates are Payable?

The rates are payable on the portion of a property price which falls within each band, as detailed below: 

Bracket Rate
£0 - £125,000 0%
£125,001- £250,000 2%
£250,001- £925,000 5%
£925,001- £1.5million 10%
£1.5million+ 12%

Stamp Duty Applicable for Buy-to-let and Second Homes   

Since April 2016, property buyers in England and Wales have had to pay an additional 3% of stamp duty for each stamp duty band, if it is a second home or a buy-to let property.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.