What is Tax?

Get tax and money saving tips with TaxBananas FREE email guides

Terms and Conditions    

TaxBanana.com is your FREE guide to tax. Helping you pay the right tax and to save money!

We are proud to be supporting the NSPCC

Tax - Stamp Duty

Home > What is Tax? > Stamp Duty

What is Stamp Duty Land Tax?

Stamp Duty Land Tax is currently payable on all purchases of land or property in the UK valued over £125,000. This applies to freehold and leasehold properties. The rate you pay depends on the value of the property, whether you are a first-time buyer, and in some cases the area in which the property is located.

If you are liable for Stamp Duty Land Tax, it is paid directly to HMRC. In many cases the solicitor who is handling the purchase will deal with the Stamp Duty, although it remains your responsibility to ensure it is paid.

In most cases, on purchases from £125,001 to £250,000, 1% Stamp Duty is payable on the whole transaction.


  1. On purchases from £250,001 to £500,000, 3% Stamp Duty is payable
  2. On purchases from £500,001 to £1,000,000, 4% Stamp Duty is payable
  3. On purchases over £1,000,001, 5% Stamp Duty is payable
  4. On purchases over £2,000,000, 7% Stamp Duty is payable

In every case, the whole Stamp Duty rate is payable on the entire transaction.

Different rates apply for first-time buyers, for all buyers in certain areas classified as ‘disadvantaged’, and for ‘zero-carbon’ homes. If you are a first-time buyer, no Stamp Duty is payable on purchases up to £250,000. For purchases over this amount, the usual rates of Stamp Duty apply.

For More Information See ...

TaxBanana.com is here to provide you with FREE independent tax information to help you save money and pay the right amount of tax. TaxBanana.com does not provide tax advice and the information provided is to help give people a better understanding and does not constitute tax advice.

find TaxBanana on facebook  follow TaxBanana on twitter  Google+

© copyright TaxBanana.com, 2012. All Rights Reserved. About Us | Contact Us | Terms & Conditions | Privacy & Cookies Policy | Sitemap | Top of Page ^