Find out how much Stamp Duty you need to pay in this article, along with some other questions you might have.
(4 minute read)
Can you pay stamp duty in instalments and other questions answered.
We will cover:
- What is SDLT and much you have to pay
- How you can pay Stamp Duty and know if you’re eligible for a refund
What is Stamp Duty?
Stamp Duty Land Tax (SDLT) is a tax that property buyers must pay in England and Northern Ireland.
It is an added percentage to the cost of the property and is measured according to its value.
Alongside the cost of the property, home buyers must consider the SDLT along with its surcharges which apply if you’re a non-UK resident, purchasing a buy-to-let or a second home.
The amount of SDLT is measured in thresholds, and it is added up depending on the cost of the property.
It is usually paid by a conveyancer or solicitor on behalf of the buyer.
How much SDLT do I have to pay?
You pay SDLT according to the value of the property. HMRC measures the total amount you need to pay based on different value thresholds, which correspond each to a percentage that is added to the total.
For example, if you buy a house for £350,000, the SDLT you owe is calculated as follows:
0% on the first £125,000 = £0
2% between £125,001 and £250,000 = £2,500
5% between £250,001 and £350,000 = £5,000
Total SDLT = £7,500
These rates vary depending on different factors. These are:
- Buyer status – if you’re a first-time buyer or homeowner
- The type of property – whether it’s residential or non-residential
- Purpose of property – if it’s your main residence or additional residence
Do first-time buyers pay SDLT?
No, if the value of the residential property is below £300,000. However, this is different from non-residential properties.
Bear in mind that non-residential rates apply to mixed-use properties. For example, a house that is attached to a surgery, bought in the same transaction.
To find out what amount of SDLT you must pay, and which rates apply to you, take a close look at the tables below.
If you’re a first-time buyer and purchasing a main residence, the following rates apply:
| Property value | SDLT Rate |
| Up to £300,000 | 0% |
| £300,001 – £500,000 | 5% |
If you’re a first-time buyer and purchasing non-residential property, these rates apply:
| Property value | SDLT Rate |
| Up to £150,000 | 0% |
| £150,001 – £250,000 | 2% |
| From £250,001 | 5% |
If you’re already a homeowner and buying your main residence, the following rates apply:
| Property value | SDLT Rate |
| Up to £125,000 | 0% |
| Up to £250,000 | 2% |
| £250,001 – £925,000 | 5% |
| £925,001 – £1,500,000 | 10% |
| £1,500,001 and above | 12% |
If you’re already a homeowner and purchasing a second or additional property – such as a holiday home, buy-to-let or rental property – the rates change:
| Property value | SDLT Rate |
| Up to £125,000 | 3% |
| £125,001 to £250,000 | 5% |
| £250,001 to £925,000 | 8% |
| £925,001 to £1,500,000 | 13% |
| £1,500,001 and above | 15% |
Can you pay stamp duty in instalments?
In short, the answer is no. You must pay the full amount within 14 days of the purchase of property or land.
Make sure you submit the payment on time to avoid late fees and added interest.
Also, you can’t pay by credit card, only via bank transfer or debit card instead.
Your solicitor will make the payment on your behalf, or you might pay for the tax yourself, but both situations won’t guarantee you from overpaying SDLT.
What is SDLT relief?
SDLT reliefs reduce the amount of tax you pay upon the purchase of a property. You can claim a refund if you believe to have overpaid stamp duty. There are many situations that make you eligible for a refund, which are unknown to solicitors.
Therefore, if you’re unsure about whether you’re eligible for a refund, seek expert tax advice and find out. We specialise in Stamp Duty refunds, so if you are eligible, we can make a claim on your behalf.
Contact us today at 01772 788200 to find out more about how we can help, or WhatsApp us out-of-hours at 07787 010190. Sending an e-mail is simple too, just fill out the short form below and we’ll get back to you!
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