Before 4 December 2014 stamp duty was charged on the entire purchase price of a property.
Prior to Gordon Brown being in charge of the nation's finances stamp duty was a flat rate of 1% above £60,000.
Additional levels were added of 1.5% above £250,000 in 1997 and 2% above £500,000.
As house price inflation took off, Mr Brown decided to cash in further by raising the tax again to 3% above £250,000 and 4% above £500,000 in 2000.
The 1% initial level was raised to its current threshold at £125,000 in March 2006.
George Osborne raised stamp duty to 5% above £1million in 2011, and 7% above £2million in 2012.
From 1 April 2016 even higher rates of stamp duty were introduced for second home owners and buy to let investors whilst in November 2017 rates for first time buyers were reduced.
Despite the punitive nature of the higher bands, they have never risen in line with the huge house price inflation that has been seen since their introduction.
From 1 April 2016 (amended on 22 November 2017 in respect of first-time buyers) stamp duty will be charged on the purchase price at a sliding scale as shown below. These rates are however suspended from 8 July 2020 until 31 March 2021 when special rates apply – see further comments below.
Stamp duty – what's changed from 8 July 2020?
In response to the coronavirus pandemic, there have been some sweeping changes to stamp duty in England and Northern Ireland, land and buildings transaction tax in Scotland, and land transaction tax in Wales. In a nutshell, the threshold at which you start paying stamp duty (or land and buildings transaction tax/land transaction tax) has increased significantly. In short:
- In England and Northern Ireland, there is now no stamp duty on any primary residential property worth up to £500,000.
- In Scotland and Wales, the threshold on a primary residence has increased to £250,000.
- In all four of the home nations, this temporary change will last until 31 March 2021.
Rates from 8 July 2020 to 31 March 2021
You can also use this table to work out the SDLT for the purchase price of a lease (the ‘lease premium’).
| Property or lease premium or transfer value | SDLT rate |
| Up to £500,000 | Zero |
| The next £425,000 (the portion from £500,001 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% |
Example In March 2021 you buy a house for £625,000. The SDLT you owe will be calculated as follows:
- 0% on the first £500,000 = £0
- 5% on the remaining £125,000 = £6,250
- total SDLT = £6,250
Rates from 1 April 2021
These rates also apply if you bought a property before 8 July 2020.
You can also use this table to work out the SDLT for the purchase price of a lease (the ‘lease premium’).
| Property or lease premium or transfer value | SDLT rate |
| Up to £125,000 | Zero |
| The next £125,000 (the portion from £125,001 to £250,000) | 2% |
| 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% |
Example In May 2021 you buy a house for £275,000. The SDLT you owe will be calculated as follows:
- 0% on the first £125,000 = £0
- 2% on the next £125,000 = £2,500
- 5% on the final £25,000 = £1,250
- total SDLT = £3,750
If you’re buying your first home
You can claim a discount (relief) if you buy your first home before 8 July 2020 or from 1 April 2021. This means you’ll pay:
- no SDLT up to £300,000
- 5% SDLT on the portion from £300,001 to £500,000
You’re eligible if you and anyone else you’re buying with are first-time buyers.
If the price is over £500,000, you follow the rules for people who’ve bought a home before.
Higher rates for additional properties
You’ll usually have to pay 3% on top of SDLT rates if buying a new residential property means you’ll own more than one.
You may not have to pay the higher rates if you exchanged contracts before 26 November 2015.
If you’re replacing your main residence
You will not pay the extra 3% SDLT if the property you’re buying is replacing your main residence and that has already been sold.
If you have not sold your main residence on the day you complete your new purchase, you’ll have to pay higher rates. This is because you own 2 properties.
You can apply for a refund if you sell your previous main home within 36 months.
If you’re buying your first home
You can claim a discount (relief) if you buy your first home before 8 July 2020 or from 1 April 2021. This means you’ll pay:
- no SDLT up to £300,000
- 5% SDLT on the portion from £300,001 to £500,000
You’re eligible if you and anyone else you’re buying with are first-time buyers.
If the price is over £500,000, you follow the rules for people who’ve bought a home before.
To calculate what stamp duty you will pay please use the calculator tool at the Money Advice Service.