Stamp Duty Land Tax relief

  • Ownership: All purchases of residential property
  • Headline benefits: Stamp Duty Land Tax relief for people buying their first home.
  • Headline requirements: Purchases of residential property of £500,000 or less by first time buyers.

Overview

Stamp Duty Land Tax is a tax to pay if you buy a property in England or Northern Ireland. 

Different rates of stamp duty are charged on the portion of a property’s value within price bands. 

For people who are not buying their first home, stamp duty usually only applies to purchases of residential properties over £125,000. Until 30 September 2021, there is a temporary increase in this threshold to £250,000.  

First-time buyers are eligible for a stamp duty relief if they purchase a property of £500,000 or less that they intend to use as their only or main residence.  

Guidance for First Time Buyers

Stamp Duty Land Tax (SDLT) is a tax to pay if you buy a property in England or Northern Ireland.

Different rates of SDLT are charged on the portion of a property’s value within price bands.

For people who are not buying their first home, SDLT usually only applies to purchases of residential properties over £125,000.

You get a relief from SDLT if you (and the person you are buying with if you are buying with someone else) are first-time buyers purchasing a residential property of £500,000 or less. This relief means that first-time buyers don’t pay any SDLT on purchases of £300,000 and below.

First-time buyers who buy a property between £300,000 and £500,000, pay SDLT at a rate of 5% on the amount above £300,000.

Property Value SDLT rate for first time buyers
£0 – £300,000 0%
The next £200,00 (the portion from £301,001 to £500,000) 5%

You can find out more about the relief for first-time buyers.

For people who are not first-time buyers, the different rates of SDLT charged on the portion of a property’s value within each price band is shown below:

Rates from 1 July 2021 to 30 September 2021

Property Value Standard SDLT rates
Up to £250,000 0%
The next £675,000 (the portion from £250,001 to £925,000) 5%
The next £575,000 (the portion from £925,001 – £1.5 million) 10%
The remaining amount (the portion above £1.5 million) 12%
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Stamp Duty Calculator

Use the calculator to work out how much stamp duty land tax you’ll pay when buying a home.