What is Stamp Duty?
Stamp Duty changes
In July 2020, the government announced a temporary increase to Stamp Duty Land Tax (SDLT) thresholds, meaning reduced rates of Stamp Duty Land Tax (SDLT) will apply on the purchase of residential properties until 31st March 2021.
You'll now pay Stamp Duty if you're buying a house for over £500,000 in England or Northern Ireland. In Scotland, you'll pay Land and Buildings Transaction Tax (LBTT), or Land Transaction Tax (LTT) in Wales, if you're buying a house for over £250,000. For more information on these changes, visit the government website.
How much is Stamp Duty?
You can find out the exact amount you have to pay on the property you're buying using the Stamp Duty calculator from Money Advice Service.
Stamp Duty for second homes
If you're buying an additional residential property, including rental properties, second homes and holiday homes, you'll have to pay additional Stamp Duty. The amount you pay depends how the purchase price and location of the property.
Buy to let Stamp Duty
In 2016, the government introduced laws meaning that anyone purchasing an additional property has to pay an increased Stamp Duty tax. As a result, the majority of buy to let home purchases now come with an additional 3% Stamp Duty fee.
How do I pay for Stamp Duty?
Your solicitor will usually calculate, collect and pay Stamp Duty owned on your behalf, but it's legally the buyers' responsibility to make sure it's paid on time.
It is possible to add Stamp Duty to your mortgage, but it's important to note that this will incur interest over the duration of the mortgage term, and will also affect your loan to value ratio (LTV).