Tue, 25 Nov 2025

Tue, 25 Nov 2025 Stamp duty: What is it and how much is it?

The future of the levy has been the subject of much speculation, with one think tank calling it "one of the most economically damaging taxes"

* Stamp duty is a tax paid by home buyers in England and Northern Ireland, with similar levies in Scotland and Wales.
* The Institute for Fiscal Studies has described stamp duty as "one of the most economically damaging taxes".
* A Conservative government would abolish stamp duty on main homes, according to Kemi Badenoch.
* Stamp Duty Land Tax (SDLT) rates vary depending on property price and whether it's a first-time buyer: + Current threshold for first-time buyers: £300,000 (less than £500,000) + First-time buyers pay 0% on the first £425,000 if buying a home worth less than £625,000
* Additional rates apply to those owning another residential property worth over £40,000: + 5% on properties up to £125,000 + Higher rates for more expensive purchases
* Firms buying dwellings worth over £500,000 pay a single rate of 17%
* SDLT raised £11.6bn for the government in 2023-24, down from £15.4bn in 2022-23.
* Scotland has its own Land and Buildings Transaction Tax (LBTT) rates: + Additional Dwelling Supplement (ADS): 8% of purchase price
* Wales has its own Land Transaction Tax (LTT) rates: + No first-time buyers' relief + Higher rate for those owning another residential property worth over £40,000
* House buyers have 14 days to pay stamp duty in England and Northern Ireland, or 30 days in Scotland and Wales.
* Failing to pay on time can result in fines or interest charges.
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