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 £250,000.
First-time buyers are eligible for a stamp duty relief if they purchase a property of £625,000 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 only applies to purchases of residential properties over £250,000.
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 £625,000 or less. This relief means that first-time buyers don’t pay any SDLT on purchases of £425,000 and below.
First-time buyers who buy a property between £425,000 and £625,000 pay SDLT at a rate of 5% on the amount above £425,000.
| Property Value | SDLT rate for first time buyers |
|---|---|
| £0 – £425,000 | 0% |
| On the portion from £425,001 to £625,000 | 5% |
If the price is over £625,000, you cannot claim the relief.
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:
| 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 to £1.5 million) | 10% |
| The remaining amount (the portion above £1.5 million) | 12% |
Stamp Duty Calculator
Use the calculator to work out how much stamp duty land tax you’ll pay when buying a home.