What is Stamp Duty?

Stamp Duty Land Tax, to give its official title, must be paid if property or land is purchased over a certain value. A different tax called Land and Buildings Transaction tax applies in Scotland.

Stamp Duty is paid when you buy or are transferred, freehold or leasehold property.

For a freehold property:

  • Nothing is paid for the first £125,000.
  • 2% is paid on the next £125,000.
  • 5% is paid on the next £675,000.
  • 10% is paid on the next £575,000.
  • 12% is paid on anything above £1.5million.

Different rules apply to leaseholds.