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Stamp Duty Land Tax (SDLT) is paid if you're buying a house worth over £125,000 in England and Northern Ireland. If you're in Scotland it's known as Land and Building Transaction Tax (LBTT) and it applies to purchases of £145,000 or more. In Wales, properties worth less than £180,000 do not pay any stamp duty.
If you're buying a rental property or second home, you may have to pay an extra 3% in Stamp Duty or LBTT. Different rates apply for commercial property.
UK stamp duty rates have changed over the years. Currently, the amount you have to pay will depend upon the price threshold in place in your area - there are different rates in England and Northern Ireland compared to Scotland and Wales.
You may be eligible for stamp duty relief as a first time buyer, or liable for a surcharge if you're buying a second property.
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).
First time buyers are not charged stamp duty on the first £300,000 of homes worth up to £500,000
A reduced rate of 5% will then be due on any proportion between £300k and £500k in England and Northern Ireland
In Scotland, first time buyers are not charged LBTT on the first £175,000 of homes worth up to £250,000.
This additional rate is applicable to rental properties, second homes and holiday homes
If you are buying an additional residential property, you have to pay additional stamp duty, the rates of which depend on the purchase price and location
An additional 3% stamp duty will be charged unless the property costs less than £40,000.
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.
